AI chipmaker Nvidia, the darling of US markets since 2019, saw its shares fall over 10% as a result of last week’s unimpressive earnings growth.
The tech-dominated Nasdaq experienced a loss of over 3%. That was the largest drop since the market tremor that began in early August due to fears of a potential US recession.
Tuesday’s wider losses on the Wall Street markets were attributed, in part, to another muted US economic data, this time on manufacturing. Meanwhile, the price of Brent crude oil fell by over 5% to $73 per barrel.
The losses continued to dominate Wednesday’s Asian trading, with Japan’s Nikkei down about 4%.
The FTSE 100 opened 0.8% lower on trading platform IG, echoing the decline that was witnessed in London the day before due to lower oil and wider commodity prices driven by the US manufacturing data.
Regarding the Nvidia-led declines, State Street Global Advisors chief strategist Michael Arone remarked, “Good just isn’t good enough any more when it comes to Nvidia’s earnings.”
