Stocks Plunge as Economic Concerns Mount and Tech Companies Disappoint

Stocks across major indexes experienced a significant drop as economic fears intensified and tech companies, including Nvidia and chip index PHLX, disappointed investors. Apple also saw a decline of 3%, resulting in a loss of $95 billion in market value.

The Dow Jones fell by 1.5%, while oil prices plummeted by 5%. China's manufacturing slowdown further exacerbated economic concerns.

Investors attributed the broad selloff in the S&P 500 and Nasdaq to factors such as volatility in presidential election years, post-Labor Day trading patterns, and apprehensions regarding an economic slowdown and weakness in AI and chip manufacturing.

The August jobs report, Federal Reserve rate decision, ISM manufacturing metric, and the CME FedWatch Tool's indication of higher odds of a 50 basis point cut were among the focal points for investors. This downturn marks a setback for the recent market rally that had brought the S&P 500 within reach of a record.