Nasdaq leads rough kickoff to September as Nvidia sell-off continues

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  Tue, September 3, 2024 at 6:31 PM GMT+2

  Stocks fall to kick off bumpy September

  US stocks fell on Tuesday to kick off a historically tough month for markets, as AI darling Nvidia (NVDA) and chip stocks led tech stocks down.

  The Dow Jones Industrial Average (^DJI) slid 1%, or over 450 points. The S&P 500 (^GSPC) dropped 1.5%, while the tech-heavy Nasdaq Composite (^IXIC) pulled back nearly 2.5%.

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  Tue, September 3, 2024 at 5:45 PM GMT+2

  Construction spending falls more than expected

  While the August jobs report coming on Friday is the headline event for scheduled economic news this week, Tuesday offered a glimpse construction activity, with implications for the housing market.

  The Commerce Department reported Tuesday that construction spending fell 0.3% in July, compared to no change in the prior month. Forecasts had the spending figures dipping by just 0.1%

  The slightly larger than expected drop in spending reflects higher mortgage rates and greater supply.

  Weaker demand has led builders to ease up on new construction projects. Single-family homebuilding dropped to a 16-month low in July.

  However, mortgage rates continued to fall in August as expectations mount of a rate cut from the Federal Reserve during the upcoming September policy meeting. Rates are expected to slide even more as potential homebuyers wait out for better rates.

  Affordability remains an issue, even as borrowing costs are likely to drop.

  Fannie Mae’s Home Purchase Sentiment Index, measuring consumer sentiment about the residential housing market, fell in July. That highlights how the lack of affordability is dampening housing activity.

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  Tue, September 3, 2024 at 5:00 PM GMT+2

  Why we’re not ready for the first presidential election of the AI era

  With the election just a few short months away and generative AI detection technologies hit-or-miss, experts say we can expect to see more generative AI-based content designed to sow discord among the electorate, reports Yahoo Finance’s Dan Howley.

  The 2024 elections are the first US presidential elections of the generative AI era, and we’re already seeing examples of the technology being used to impact how Americans cast their ballots.

  On Aug. 18, former President Donald Trump shared a series of AI-generated images of Taylor Swift fans wearing pro-Trump shirts, despite the fact that the photos originally appeared in a post marked as satire on X (formerly Twitter). In January, deepfake phone calls went out to some New Hampshire residents, attempting to discourage them from participating in the state’s Democratic primary.

  “The danger is that if there is a type of AI disinformation … like the Taylor Swift images … if millions of people are exposed to it and only 10% or 15% do not realize that that’s fake, that could be a substantial number for thinking about elections,” explained Augusta University political science professor Lance Hunter.

  “[In] swing states, sometimes the margin of victory is less than 1%. So … a small number of people being exposed to this disinformation and not realizing it’s disinformation could be influential for election outcomes,” Hunter added.

  Read more here.

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  Tue, September 3, 2024 at 4:15 PM GMT+2

  Stocks trending in morning trading

  Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Tuesday:

  Boeing (BA): Shares of the plane manufacturer sank 6% Tuesday morning following a price target cut from Wells Fargo, which highlighted pressure on the company’s cash flow as it works to develop new aircraft. The company also faces a major potential strike, as its workers in Washington state are set to go on strike if a deal isn’t reached later this month.

  US Steel (X): The steel producer slipped nearly 4% after Democratic nominee Kamala Harris said the company should stay American-owned and run in the face of a proposed takeover by Japan’s Nippon Steel. Republican nominee Donald Trump has also opposed the proposed sale.

  Nvidia (NVDA): Shares of the AI chip designer fell 5% during morning trading on Tuesday, continuing a slide that accelerated after the company’s earnings report last week that failed to impress Wall Street. The stock is down more than 10% over the last five days, highlighting a challenging moment for AI and chip companies that have stalled, as questions about returns on investments from their customers grow louder.

  Unity (U): The video game software developer gained more than 7% Tuesday after analysts at Morgan Stanley upgraded its shares to Overweight from Equal Weight, pointing to the strength of its game engine business and Unity’s hold of its market share.

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  Tue, September 3, 2024 at 3:32 PM GMT+2

  Stocks slide in morning trading

  US stocks fell on Tuesday to kick off September, a historically tough month for markets as attention turned to a week of labor data highlighted by a crucial monthly jobs report.

  The Dow Jones Industrial Average (^DJI) slid roughly 0.5% on the heels of a winning session booked before the Labor Day break. The S&P 500 (^GSPC) dropped 0.6% while the tech-heavy Nasdaq Composite (^IXIC) pulled back 0.8%.