The S&P 500 index plunged about 2.5% in a matter of minutes after a rally in NVDA (Nvidia Corporation) shares reversed its upward trend to a downward trend.
The Economic Times
Drivers:
News that the US labor market was stronger than expected (119,000 new jobs), which reduced hopes of an interest rate cut.
The Economic Times
A sharp drop in the price of Bitcoin (crypto), which also fueled panic.
The Economic Times
Implications: Investors may be more cautious in the technology and AI sectors, and the influence of interest rates is back in the spotlight.
Tip: If you have investments in the US stock market or global indices influenced by the US, it's wise to re-examine your risk exposure—especially if you rely on the US market as a leading indicator.
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