Nasdaq leads declines as stocks extend slide

U.S. technology stocks extended losses on Wednesday morning, following a sharp sell-off driven by concerns about economic growth and AI trade amid a drop in Nvidia (NVDA) shares.

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

Nvidia shares are retreating as Nvidia shares fall, an indication that faith in the artificial intelligence boom that has driven much of this year’s gains is seeping out of the market. The artificial intelligence giant lost $279 billion in market value on Tuesday, and its shares fell more than 2% Wednesday morning after U.S. regulators stepped up an antitrust investigation.

At the same time, concerns about cracks in the U.S. economy have resurfaced somewhat after a tepid reading on factory activity. Investors are keeping an eye on fresh data as they gauge the likely size of the Federal Reserve’s interest rate cut expected within weeks.

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

A reading on job openings is due on Wednesday that will shed light on the labor market and the chances of a “soft landing” for the economy. The data will serve as a prelude to the highly anticipated August jobs report on Friday that is likely to influence the Federal Reserve’s monetary policy decisions.