The US markets ended deeply in red on Monday with Nasdaq settling cut of over 570 points. Concerns about the U.S. economy slipping into recession following last Friday's disappointing jobs report triggered the significant weakness in the overseas markets. Shares of AI darling and market leader Nvidia (NVDA) plunged by 6.4 amid an unwinding of the artificial intelligence trade that recently helped the markets to record highs. Tech giant Apple (AAPL) also tumbled by 4.8 percent after Warren Buffett's Berkshire Hathaway revealed it sold nearly half its stake in the iPhone maker. The continued weakness on Wall Street came on the heels of an overseas sell-off, which saw Japan's Nikkei 225 Index record its biggest slump since Black Monday in October 1987.
On the economic data front, the Institute for Supply Management (ISM) showed service sector activity in the U.S. turned positive in the month of July. The ISM said its services PMI climbed to 51.4 in July from 48.8 in June, with a reading above 50 indicating growth. Street had expected the index to rise to 51.0. on the economic data front, telecom stocks showed a substantial move to the downside on the day, dragging the NYSE Arca North American Telecom Index down by 4.2 percent. Considerable weakness is also visible among airline stocks, as reflected by the 4.1 percent nosedive by the NYSE Arca Airline Index. Networking stocks also saw significant weakness, with the NYSE Arca Networking Index plunging by 3.8 percent.
Dow Jones Industrial Average fell 1,033.99 points or 2.6 percent to 38,703.27, Nasdaq dropped 576.08 points or 3.43 percent to 16,200.08 and S&P 500 was down by 160.23 points or 3 percent to 5,186.33.
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