📆 Wednesday, September 4
► The Stoxx 600 index fell over 1%, with technology stocks leading the losses as the sharp tech selloff in the US spread across the globe. ASML Holding and other major tech companies saw significant declines. Economic data from Germany and Spain provided a mixed picture; while Spain's composite PMI signaled its ninth consecutive month of expansion at 53.5, Germany's service sector growth slowed for the third straight month, with the PMI falling to 51.2. France, on the other hand, reported its strongest services expansion since May 2022, with a PMI of 55.0, but the French services sector certainly received a signficiant Olympics boost.
► U.S. stock futures edge further down in early pre-market trading on Wednesday following a sharp selloff in technology stocks, led by Nvidia, which erased $279 billion in market value – the biggest one-day wipeout in markte value in the history. The S&P 500 future is currently 0.2% lower and the Nasdaq 100 0.4% lower. For both indices, yesterday was the worst start to September – historically a difficult month for equities – since 2015 and 2002 (Nasdaq 100). Market sentiment is now centered on the potential for a significant rate cut from the Federal Reserve as economic data continues to show signs of slowing. Traders are now focused on upcoming U.S. economic data, particularly the JOLTS report, to gauge potential shifts in Federal Reserve policy. Markets expect the Bank of Canada to cut rates by 25 bps later today.
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