Stocks Plunge as Economic Slowdown Fears Mount

Stocks took a nosedive, primarily driven by tech companies such as Nvidia, Apple, and chip makers. Economic concerns were further exacerbated by China's manufacturing slowdown and falling oil prices.

Investors attributed the selloff to volatility in presidential election years, post-Labor Day trading patterns, and fears of an economic slowdown and weakness in AI and chip manufacturing. The S&P 500 and Nasdaq experienced a broad selloff, with Nvidia facing the largest one-day decline in U.S. stock history.

The global markets also trembled over recession fears, with weak data hinting at a faltering U.S. economy and potential Fed interest rate cuts pending JOLTS and Beige Book reports. Stock futures declined, while investors anxiously awaited labor data and the release of the Beige Book report.

Despite the S&P 500's strong performance this year, analysts warn that uncertainties in sentiment, positioning, and politics could hinder the market's future direction.