Stocks tumble as market leaders turn losers

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Chip shares dragged Asian indexes lower on Wednesday and European futures fell after growth concerns drove the steepest selloff in a month on Wall Street and...

SINGAPORE - Chip shares dragged Asian indexes lower on Wednesday and European futures fell after growth concerns drove the steepest selloff in a month on Wall Street and investors wiped $279 billion from the value of market darling chipmaker Nvidia.

"The next few months will probably see the bottom of earnings and for investors, in the next few months is where you deploy into a lot of those opportunities.""Hong Kong is pretty weak, so whenever we see a negative signal like that from the U.S., Hong Kong will be performing even worse. "When you look at Nvidia as a market leader, it's not holding up despite very strong profits. There's an old saying - if the troops can't follow the generals it's a warning sign ... if the Nvidias and Apples and Microsofts cannot hold up the market, that's it we're in a bear market.""What I expect is that we’ll see a continued rotation away from technology stocks leading the way to broader leadership.

"There’s concern about what the job numbers are going to show, about seasonality. That’s why the VIX is higher. I don’t think the ISM number, showing a weaker manufacturing sector but higher prices, was at all helpful. And there you have it. Gravity.""People are over-allocated to Nvidia and many of these names and they’re trying to reduce that exposure. It just has the potential for these things to sell off quite significantly.

 

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