US Futures Dip Following Downbeat Start to September

US futures dipped after a poor start to September for Wall Street, with notable declines in technology stocks, particularly Nvidia (NASDAQ:NVDA), amid an ongoing antitrust investigation.

1. Futures Lower

US stock futures showed a downward trend on Wednesday, indicating further declines from Wall Street’s previous session. By 03:34 ET (07:34 GMT), the Dow futures were down by 80 points (0.2%), S&P 500 futures fell by 23 points (0.4%), and Nasdaq 100 futures lost 127 points (0.7%).

Tuesday marked a negative kickoff to September after a turbulent August, typically one of the worst months for stocks. Traders are awaiting job market data that may impact upcoming Federal Reserve interest rate decisions. Market sentiment was also impacted by disappointing results from the Institute for Supply Management’s manufacturing activity report, raising fears of an economic slowdown.

The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite saw their largest daily percentage drop since August, with the Magnificent Seven tech stocks suffering losses, particularly Nvidia, which fell by almost 10%, erasing $279 billion in market capitalization.

2. JOLTS Ahead

On Wednesday, investors will review the Job Openings and Labor Turnover Survey (JOLTS) for indicators of the labor market. Economists expect available job roles to decline in July to 8.090 million from June’s 8.184 million. This data precedes the nonfarm payrolls report scheduled for Friday and is expected to inform Fed Chair Jerome Powell’s monetary policy shifts in response to potential job market risks. Analysts widely predict a 25-basis point interest rate reduction from the Fed during its upcoming meeting on Sept. 17-18, where current rates are at a 23-year high of 5.25% to 5.5%.

3. DoJ Subpoena to Nvidia – Bloomberg News

The US Department of Justice has allegedly subpoenaed Nvidia as part of a probe into potential antitrust issues, leading to a more than 3% drop in Nvidia’s shares in premarket trading. Sources report concerns that Nvidia may be restricting customer supply changes and penalizing non-exclusive users of its AI-optimized processors. Nvidia responded, asserting that customers can choose any solutions that meet their needs.

4. Nippon Steel Vows US Steel Will Be Managed by Americans

Japan’s Nippon Steel announced that, should its $14.9 billion acquisition of US Steel proceed, the company’s senior management and majority of board members will be American citizens. This will ensure that US Steel remains American-owned and operated, addressing concerns raised by US political figures, including Democratic presidential candidate Kamala Harris and President Joe Biden.

5. Crude Retreats

Crude oil prices fell on Wednesday, continuing yesterday’s decline amid concerns over economic growth and potential resumption of Libyan exports. By 03:35 ET, Brent crude dropped 1.3% to $72.81 per barrel, and US crude (WTI) also fell 1.3% to $69.41 per barrel, following a more than 4% drop in the previous session.