The Dow records its worst day since March

Stocks fell sharply Thursday after a tech rally, sparked by stronger-than-expected Nvidia results, was short-lived. Traders also braced for a key speech from Federal Reserve Chairman Jerome Powell.

The Dow Jones Industrial Average closed 373.56 points lower, or 1.08 per cent, at 34,099.42. The S&P 500 lost 1.35 per cent to end the day at 4,376.31. The tech-heavy Nasdaq Composite shed 1.87 per cent to 13,463.97.

Thursday marked the worst day for the Dow since March. The S&P 500 and Nasdaq had their biggest one-day loss since Aug. 2.

Nvidia shares reached an all-time high after the company reported quarterly earnings and revenue that exceeded lofty analyst expectations. The company also raised its guidance, with executives predicting third-quarter revenue would climb to $16 billion, or a year-over-year increase of 170 per cent. However, the stock closed just 0.1 per cent higher.

The information technology sector the S&P 500′s biggest loser, ending Thursday down 2.15 per cent, weighed by declines in other semiconductor stocks including Advanced Micro Devices and Intel. Shares of major tech companies saw declines during the session, with Amazon losing 2.7 per cent, Apple declined 2.6 per cent, and Netflix dropping 4.8 per cent.

Dollar Tree was the worst-performing stock in the S&P 500, losing 12.9 per cent on disappointing third-quarter guidance. Shares of Nike shed 1.1 per cent, extending their record losing streak. Boeing dragged down the Dow, losing nearly 5 per cent.

To be sure, other investors remain bullish on the tech sector as their hopes for a resilient economy remain intact.

US Treasury yields climbed on Thursday as investors waited for signals on monetary policy from central bankers’ comments at the Jackson Hole, Wyoming meeting on Friday. The yield on the benchmark 10-year Treasury note was higher at 4.241 per cent, after hitting a 16-year high earlier this week.

In commodity related news, Australia's emerging lithium companies are witnessing a surge in buyouts given lower valuations along with growing cash requirements needed to ramp activities. The world's top lithium producers are reluctant to pay up for listed producers whose market valuations have sky-rocketed due to booming prices. Note that M&A activity is on the rise as Australia is implementing a critical minerals strategy in order to become a renewable energy superpower

European natural gas prices fell notably as fears of an Australian LNG plant strike diminished. TTF futures dropped 11 per cent after a tentative agreement was reached between Australian unions and management, averting a potential strike.

The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, has decided to expand its membership by inviting six new nations to join: Saudi Arabia, Argentina, Iran, Ethiopia, Egypt, and the UAE. The new BRICS will now control 6 of the top 9 oil producing nations, over 40 per cent of the world's population and a huge amount of the natural resources in the world.

Futures

The SPI futures are pointing to a 1.3 per cent fall.

Currency

One Australian dollar at 7:20 AM was buying 64.16 US cents.

Commodities

Gold lost 0.17 per cent. Silver fell 0.77 per cent. Copper lost 1.26 per cent. Oil shed 0.01 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.18 per cent, Frankfurt lost 0.68 per cent, and Paris closed 0.44 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei gained 0.87 per cent, Hong Kong’s Hang Seng added 2.05 per cent while China’s Shanghai Composite closed 0.12 per cent higher.

The Australian sharemarket closed 0.47 per cent higher at 7,182.

Ex-dividends

Argo Investments (ASX:ARG) is paying 18 cents fully franked
Estia Health (ASX:EHE) is paying 12 cents fully franked
Fiducian Group (ASX:FID) is paying 18 cents fully franked
G.U.D. Holdings (ASX:GUD) is paying 22 cents fully franked
Ingenia Group (ASX:INA) is paying 5.8 cents unfranked
Morphic Ethical Equities Fund (ASX:MEC) is paying 3.5 cents fully franked

Dividends payable

Aspen Group (ASX:APZ)
BWP Trust ASX:BWP)
Goodman Group ASX:GMG)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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