Results of Rights Issue | INN
Stay informed on the latest developments in the tech world with the Investing News Network’s round-up.
1. Rocky start to September for tech sector
US markets began the week with their biggest daily percentage declines since the August 5 rout.
The Nasdaq Composite (INDEXNASDAQ:.IXIC) closed Tuesday (September 3) down 2.85 percent, while the S&P 500 (INDEXSP:.INX) lost 1.83 percent and the Russell 2000 (INDEXRUSSELL:RUT) shed 2.77 percent.
These declines came on the back of new US manufacturing data for August. The S&P Global US Manufacturing PMI posted 47.9 in August, down from 49.6 in July and below 50 for the second consecutive month, while the ISM Manufacturing PMI registered 47.2 percent in August, up 0.4 percentage points from 46.8 percent in July.
In Canada, S&P Global Canada Manufacturing PMI data weighed on the S&P/TSX Composite Index (INDEXTSI:OSPTX), revealing reduced output and demand, as well as a modest reduction in employment in the country.
Wednesday (September 4) saw the Bank of Canada lower interest rates for the third time this summer, while in the US the Department of Labor’s JOLTS report revealed job openings were at a three-and-a-half year low in July, down 1.1 million compared to a year ago. Major indexes held relatively steady, although the Nasdaq Composite slid at the opening bell, dragged down by a selloff that erased nearly 9.5 percent of NVIDIA’s (NASDAQ:NVDA) value in 24 hours.
The decline came after Bloomberg reported that the US Department of Justice had issued the company a subpoena following a recent antitrust probe — a story that NVIDIA later denied.
NVIDIA performance, August 30 to September 6, 2024.
Chart via Google Finance.
Thursday’s (September 5) economic data readings out of the US and Canada were a mixed bag.
In the US, ADP’s national employment report indicated that the labor market continues to cool. The private sector added 99,000 jobs instead of the forecast 145,000, revealing the lowest hiring rate in three years.
In Canada, the S&P Global Canada Services PMI came in at 47.8 for August, up slightly from 47.3 in July, but still below the 50 no-change mark. This indicates a continued, albeit slower, contraction in the sector.
Traders were optimistic ahead of Friday’s (September 6) much-anticipated nonfarm payroll report, which is the US Federal Reserve’s preferred measure of economic health. The major indexes opened slightly higher, but then dropped after the report showed 142,000 new jobs were added instead of the estimated 160,000; there was also a 0.1 percent decrease in the unemployment rate from 4.3 percent in July. The VIX (INDEXCBOE:VIX) edged above 22 as investors worried the economy’s resilience may be waning and could struggle to stay afloat until interest rate relief arrives.
In Canada, Statistics Canada’s labor force survey showed a modest 22,000 jobs were added last month, while the jobless rate increased to 6.6 percent from 6.4 percent in July.
The data paints a complex picture of the…
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