US futures slipped after a sluggish start to September on Wall Street. Technology stocks, particularly Nvidia (NASDAQ), took a hit, with Nvidia’s shares plunging further in premarket trading. This came in the wake of reports that U.S. regulators had issued a subpoena to the company as part of an ongoing antitrust investigation.
1. Futures lower
US stock futures continued their decline on Wednesday, pointing to an extension of Tuesday’s selloff.
As of 03:34 ET (07:34 GMT), Dow futures dropped by 80 points, or 0.2%, while S&P 500 and Nasdaq 100 futures fell 0.4% and 0.7% respectively.
After a volatile August, September opened with a downtrend, adding to investor worries. Weak manufacturing data from the Institute for Supply Management only compounded concerns about a slowing U.S. economy.
2. JOLTS ahead
Wednesday’s upcoming release of the Job Openings and Labor Turnover Survey (JOLTS) will give investors a closer look at the labor market. Economists predict a slight decrease in job openings for July, ahead of Friday’s nonfarm payrolls report, which could influence future Federal Reserve decisions on interest rates.
The CME’s FedWatch Tool suggests that a rate cut of 25 basis points is likely when the Fed meets later in September, with current rates at a 23-year high of 5.25% to 5.5%.
3. Nvidia subpoena
The U.S. Department of Justice has issued a subpoena to Nvidia as part of its investigation into potential antitrust violations. Bloomberg reported that the probe centers on concerns that Nvidia’s AI processors may limit customer choice and penalize those not fully reliant on its technology. Nvidia’s stock fell by over 3% in premarket trading following the news.
Nvidia stated that its customers have the freedom to choose the best solution for their needs and attributed its market success to merit.
4. Nippon Steel’s promise for US Steel
Nippon Steel reassured stakeholders that if its $14.9 billion acquisition of U.S. Steel moves forward, the company’s core management would remain American. The move comes in response to political concerns from U.S. leaders, including Kamala Harris and President Biden, about maintaining U.S. ownership of strategic companies.
5. Crude oil retreats
Oil prices continued their drop on Wednesday, adding to the previous session’s selloff. Brent fell by 1.3% to $72.81 per barrel, while U.S. crude futures declined by the same margin to $69.41, driven by concerns about economic growth and potential increases in Libyan oil exports.
