Nasdaq leads decline as stocks continue to slide

U.S. technology stocks extended losses Wednesday morning, after a sharp decline fueled by concerns about economic growth and AI trading amid a slide in Nvidia (NVDA) shares.

The S&P 500 Index (^GSPC) fell about 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) posted losses of about 0.7%. Meanwhile, the Dow Jones Industrial Average (^DJI) gained just under 0.1%.

Shares of Nvidia are falling, a sign that confidence in the rise of artificial intelligence that has driven much of this year’s gains is fading in the market. The AI ​​giant lost $279 billion in stock value on Tuesday, and its shares fell more than 2% Wednesday morning after U.S. regulators reportedly stepped up an antitrust investigation.

At the same time, fears of cracks in the U.S. economy have reignited somewhat after mixed data on industrial activity. Investors are keeping a close eye on the new data to gauge the likely size of the Federal Reserve’s interest rate cut expected in the coming weeks.

A tough start to September has investors bracing for increased volatility as the historically difficult month for stocks follows a turbulent August. While markets have managed to recover from that month’s losses, analysts suggest stocks may not be out of the woods yet.

The job openings figures, which will be released Wednesday, will provide a snapshot of the state of the labor market and the chances of a “soft landing” for the economy. The figures will serve as a preamble to the much-anticipated August employment report, which will be released Friday and is expected to influence the Fed’s monetary policy decisions.