- Stock sales continue <unk> mainly tech stocks lose
The selling wave on U.S. markets continued on Monday. Especially on the previously strong tech exchange Nasdaq, the downturn initially continued. However, at least temporarily, a recovery set in.
Concerns about a potential recession in the USA had already pushed the growing hopes for a rate cut in September into the background. A weak U.S. jobs report on Friday further fueled investors' fears that the economy could cool faster than expected. The German stock market also came under pressure. Ultimately, the Dax lost 1.82 percent to 17,339.00 points and recovered significantly from its intraday low of around 17,025 points. However, it remains the lowest level for the German stock market barometer since February. In the three trading days since early August, the Dax has now lost more than six percent. Currently, there is still a 3.5 percent surplus from its previous annual gain.
The U.S. leading index Dow Jones Industrial lost 2.58 percent to 38,713.93 points. It is heading for a third consecutive loss day. It's a similar picture for the other indices: The broad-based S&P 500 fell 2.87 percent to 5,193.29 points. The selection index Nasdaq 100 fell to 17,435 points, then rose 600 points. It last had a loss of around 2.3 percent at about 18,000 points.
Nasdaq losses: Investors flee to U.S. government bonds
The Nasdaq 100 was particularly weighed down by the continued weakness of chip stocks like Nvidia. They had risen sharply in recent times due to the hype around artificial intelligence (AI) and are now coming under particular pressure.
Investors fled to supposedly safe havens again at the start of the week. Ten-year U.S. government bonds rose to their highest level since June last year in early trading.
The shares of AI pioneer Nvidia fell 6.1 percent. A media report that the chipmaker is delaying the launch of new AI chips due to design flaws weighed on sentiment. However, it is still up more than 100 percent since the beginning of the year. Other semiconductor stocks like Intel, Micron Technology, and Broadcom were also under significant pressure on Monday. Another bank, Bank of America, withdrew its previously positive recommendation for Intel after the company's disappointing quarterly results and annual targets hit the stock.
Tech stocks weigh on markets
Shares of electric vehicle maker Tesla fell 3.9 percent. The shares of iPhone maker Apple fell 3.3 percent. It was reported over the weekend that investment firm Berkshire Hathaway, led by renowned investor Warren Buffett, sold about half of its stake in the company in the second quarter, worth $75.5 billion.
The shares of Biontech, listed in New York, fell 5.4 percent. The Mainz-based vaccine manufacturer made a high nine-figure loss in the second quarter on its way to approving new products for cancer treatment. Shares of U.S. competitor Moderna fell 4.7 percent in Biontech's wake - additional pressure came from the withdrawal of a positive investment recommendation by Canadian bank RBC. The vaccine maker should expect significant headwinds in the short term for both RSV and Covid vaccines, wrote analyst Luca Issi.
Cryptocurrencies also under pressure
The ongoing downturn of Bitcoin further dragged down the shares of cryptocurrency trading platform Coinbase - they fell 6.3 percent.
Against the general market weakness, Kellanova's shares jumped by 12.3 percent. According to Bloomberg News, citing informed sources, Mars, a competitor in the breakfast cereal industry, is interested in the manufacturer.
The following weak performance of tech stocks, such as Nvidia and Intel, on the Nasdaq 100, led investors to seek refuge in U.S. government bonds.
Despite the ongoing pressure on tech stocks and the continued weakness of the Nasdaq, some companies, like Kellanova, managed to buck the trend and saw their shares rise.
