Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., August 30, 2024.
Brendan McDermid | Reuters
U.S. stock futures fell Tuesday night after the major averages kick-started September lower, with the S&P 500 clocking its worst day since early August.
S&P 500 futures and Nasdaq 100 futures dipped 0.54% and 0.8%, respectively. Dow Jones Industrial Average futures slid 19 points, or 0.34%.
Nvidia shares fell 2% in extended trading after a Bloomberg report, citing sources familiar, said the U.S. Justice Department sent subpoenas to the chipmaker. The move comes after Nvidia tumbled more than 9% in the regular session amid a broader pullback in semiconductor stocks.
Wall Street is coming off a losing session, with the major benchmarks posting their worst day going back to the Aug. 5th sell-off as chip names came under pressure and the latest economic data implied slowing growth for the U.S. economy. The 30-stock Dow fell more than 600 points, or 1.5%, while the S&P 500 slid 2.1%. The Nasdaq Composite dropped 3.3%.
Traders are bracing for further volatility in September, historically a weak month for equities, with many investors anticipating a pullback of 5% or more in the coming weeks. Still, some bullish investors expect any decline in stocks could be a buying opportunity.
“The next eight weeks should be a prime, a very prime opportunity, to rebalance your portfolio, get more diversified, and actually let the market activity go in your favor,” Chris Hyzy, investment chief at Merrill and Bank of America Private Bank, said on CNBC’s “Closing Bell” on Tuesday.
Corporate earnings season is largely behind investors, but reports from retailers Dick’s Sporting Goods and Dollar Tree are set to release before the open on Wednesday. Hewlett Packard Enterprise is set to post earnings after the close.
Traders will also look to the latest releases on the U.S. trade deficit, job openings and labor turnover (JOLTS) survey, and factory orders data.
