Investing.com – Market Overview

The S&P 500 slipped on Wednesday as Nvidia’s rebound faded, keeping a lid on tech stocks despite a sharp drop in Treasury yields amid rising bets on a jumbo Fed rate cut later this month.

At 4:00 p.m. EST (2000 GMT):
– Dow Jones Industrial Average gained 38 points, or 0.1%
– S&P 500 fell 0.2%
– Nasdaq Composite fell 0.3%

The main Wall Street indices suffered a selloff on Tuesday after U.S. investors returned from the Labor Day holiday, following disappointing manufacturing activity data that fueled economic worries.

Treasury Yields and Labor Market Concerns

The two-year Treasury, sensitive to Fed policy, fell more than 12 basis points to 3.766% as job openings unexpectedly dropped. Job openings fell to 7.67 million in July from a downwardly revised 7.91 million in June, pushing the ratio of vacancies to unemployed to 1.07-to-1, falling below pre-pandemic levels.

Citi analysts remarked, “Today’s report adds to the evidence that the labor market is not only looser than pre-pandemic but is continuing to cool and potentially at a faster pace.”

Market participants await the upcoming August U.S. jobs report, which will be crucial for the Federal Reserve’s decision on potential rate cuts of 25 or 50 basis points on September 18.

Nvidia’s Fading Rebound

Shares in Nvidia (NASDAQ:NVDA) closed 1% lower, contributing to a broader tech sector decline after an intraday rebound lost momentum. Bloomberg reported the company received a subpoena from the US Department of Justice regarding its AI chip market dominance.

Corporate Earnings in Focus

• Zscaler (NASDAQ:ZS) slumped 18% despite topping quarterly estimates due to weaker-than-expected guidance.
• Asana (NYSE:ASAN) fell 6% after a challenging quarter and CFO change.
• Pagerduty (NYSE:PD) closed 1% lower after reducing revenue forecasts.
• Conversely, Clover Health Investments Corp (NASDAQ:CLOV) shares rose 14% after securing a contract with the Iowa Clinic. Gitlab (NASDAQ:GTLB) stock increased 21% following strong results and an uplifted forecast.

(Contributors: Senad Karaahmetovic and Scott Kanowsky)