US Stocks Tumble, Led by Continued Tech Selloff, as Economic Concerns Mount

Nvidia Slides as New AI Chip Reportedly Delayed

21 minutes ago

Nvidia (NVDA) shares fell sharply early trading Monday following reports that the company’s highly anticipated Blackwell system, including its next-generation artificial intelligence (AI) chips, will be delayed. Nvidia was leading a broader tech sector decline as global stock markets retreated amid growing concerns about the health of the U.S. economy.

The Blackwell AI chip could be held up by three months or more because of design flaws, The Information reported, citing anonymous sources close to the company.

Nvidia told Microsoft (MSFT) and another large cloud provider there was a delay, the article said. A delay would affect Amazon (AMZN), Alphabet’s (GOOGL) Google, Meta (META), Microsoft, ChatGPT maker OpenAI, Tesla (TSLA), and Elon Musk’s xAI, among others.

Strong demand for Blackwell ahead of its rollout played a key role in helping drive Nvidia’s stock higher this year, and was expected to lift Nvidia partners like Micron Technology (MU) and Monolithic Power Systems (MPWR), as well as benefit others in the AI space.

Nvidia shares were down 5.8% at $101.07 in recent trading, after sliding as low as $90.69 earlier in Monday’s session.

–Naomi Buchanan

Bank Stocks Slide on Economic Concerns

57 minutes ago

Bank stocks tumbled on Monday as last week’s sell-off, which was accelerated by a weak jobs report on Friday, extended into the new week amid concerns about the rising risk of a U.S. recession and a weakening consumer outlook.

The S&P Banks Select Industry Index was down nearly 4% in recent trading. Shares of America’s largest lenders, JPMorgan Chase (JPM) and Bank of America (BAC), were down 2.5% and 3.5%, respectively. Citigroup shares fell more than 5%.

“Given the credit sensitivity of these banks, and signs from the credit card companies that the consumer is slowing down, I think that this is just an indiscriminate selloff for portfolio managers of anything that is sensitive to higher credit losses and a weakening economy,” UBS large-cap banks analyst Erika Najarian said on CNBC Monday morning.

VIX Jumps to Highest Level Since March 2020

2 hr 23 min ago

One measure of stock market volatility surged to its highest level since the early days of the Covid-19 pandemic on Monday morning as stocks across the globe continued to suffer big losses.

The Cboe Volatility Index (VIX) jumped above 60 on Monday, the highest the “fear index” has been since March 2020. It is the index’s highest reading outside of two distinct market meltdowns: the onset of Covid-19 and the fallout from the failure of Lehman Brothers in September 2008.

–Colin Laidley

Investors Flee Risk for Safety of Bonds

3 hr 9 min ago

Money is piling into bonds as investors seek the safety of Treasurys, with the U.S. 10-year yield falling below 3.7% Monday morning for the first time since June of last year.

UBS in a note Monday said it now anticipates 100 basis points of rate cuts this year, up from 50 basis points previously, while traders are increasingly forecasting an emergency rate cut even before the September meeting.

“US equities and bond yields fell in tandem on Friday due to weak US jobs data, raising concerns that the Fed may have delayed rate cuts too long, risking a recession,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note Monday.

–Nisha Gopalan

Major Stock Indexes Poised to Open Sharply Lower

3 hr 55 min ago

Futures tied to the Dow Jones Industrial Average were down 2.1%.

S&P 500 futures were down 3.1%.

Nasdaq 100 futures were down 4.6%.