The four major U.S. stock market indexes collectively plunged on the 3rd as the latest data showed that concerns about the U.S. economic contraction still remain. Huida's share price plummeted 9.5%, and its market value evaporated by US$278.9 billion, setting a record for the largest single-day market value drop in the history of the US stock market. TSMC's ADR plummeted 6.57%.
- The Philadelphia Semiconductor Index fell 7.7%, the largest decline since the COVID-19 stock market crash in March 2020.
- The Dow Jones Industrial Average fell 626.15 points, or 1.51%, to close at 40936.93 points
- The S&P index fell 119.47 points or 2.12% to close at 5528.93 points
- The Nasdaq index fell 577.33 points or 3.26% to close at 17136.30 points
Multiple reasons for the crash
The August ISM manufacturing index released last night in the United States was 47.2, lower than the expected 47.5, and has been below the 50 boom and bust line for five consecutive months, indicating that manufacturing activity continues to be sluggish, and the Markit manufacturing PMI released earlier on the same day The data reported 47.9, which was also lower than expected and the previous value of 48, reviving market concerns about the outlook for the U.S. economy.
The biggest reason for the sharp decline in technology stocks is that, on the one hand, analysts once again warned that the market value of AI stocks is too high and that effective profits cannot be achieved in the short term; on the other hand, the U.S. Department of Justice issued a formal subpoena against Nvidia. , investigating whether the leading company violated antitrust laws.
It is understood that the antitrust investigation by the US Department of Justice is mainly focused on whether Huida pressured cloud service providers in the GPU market, requiring them to purchase multiple products? Or charge higher prices to customers who purchase competitors' chips... Huida currently denies these accusations and emphasizes that the company complies with competition regulations; however, France is also conducting similar investigations, and Huida may face more legal challenges in the future.
Bitcoin falls below 56,000
Affected by the decline in U.S. stocks, Bitcoin continued to fall from $59,000 last night, and accelerated its decline at 9 o'clock. At the time of writing, the lowest price was $55,600, the lowest since August 8. The decline in the past 24 hours expanded by more than 5%.
Ethereum approaches $2,300
The trend of Ethereum is close to that of Bitcoin. As of this writing, it has reached a minimum of $2,303, down more than 8% in the past 24 hours.
The entire network liquidated US$190 million in the past 24 hours
Bitcoin fluctuated and fell. According to Coinglass data, in the past 24 hours, the entire cryptocurrency contract liquidation amount was approximately US$190 million, and a total of more than 75,000 people were liquidated.
The market is currently paying attention to the August non-farm payrolls data to be released this Friday to determine the U.S. economic outlook and the Federal Reserve's interest rate cut path.
