Nvidia suffers record US$279 billion loss in market value as Wall Street drops

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Shares of AI heavyweight Nvidia tumbled 9.5 per cent on Tuesday (Sep 3) in the deepest single-day decline in market value for a US company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data.

Shares of AI heavyweight Nvidia tumbled 9.5 per cent on Tuesday in the deepest single-day decline in market value for a US company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data.

Worries about slow payoffs from hefty AI investments have dogged Wall Street's most valuable companies in recent weeks, with shares of Microsoft and Alphabet trading lower following their quarterly reports in July. Tuesday's weakness in chip stocks accompanied wide declines on Wall Street, with the Nasdaq dropping 3.3 per cent and the S&P 500 down 2.1 per cent.

Investors will get a host of data on the labour market this week, culminating in Friday's key government payrolls report.

 

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Leveraged Nvidia ETF issuers saw trading surge in bearish products ahead of earningsInterest in leveraged exchange-traded funds that allow investors to profit when shares of Nvidia fall grew steadily ahead of the chipmaker's quarterly results, according to data from some of the companies that issued the products.
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