Nvidia's selloff, renewed growth concerns hammer stocks
Business
Nvidia's selloff, renewed growth concerns hammer stocks
LONDON (Reuters) - Shares fell globally on Wednesday, hit by a drop in tech stocks sparked by a record sell-off for US chipmaker Nvidia and as expectations of fading global growth bruised riskier assets, pushing oil prices to multi-month lows and buoying bonds.
European shares shed 1%, with major markets in London, Paris and Frankfurt down between 0.6% and 0.9%. Semiconductor companies were the biggest losers, with ASML Holdings dropping 5.4%.
The pain was set to continue on Wall Street, where stock futures extended declines. S&P 500 and Nasdaq futures , were down 0.4% and 0.5% respectively.
Wall Street closed sharply lower on Tuesday, with artificial intelligence darling Nvidia (NVDA.O) sinking by a record $279 billion as investors checked their enthusiasm for AI-related stock.
"One of the big risks is that you have this market concentration, and all it takes is those names to be volatile, for it to feed through to the entire market," said Justin Onuekwusi, chief investment officer at investment firm St. James's Place.
The MSCI world equity index which tracks shares in 47 countries, fell 0.5%.
September has historically been a bad month for stocks, though analysts pointed to a confluence of factors behind the rout, including weak US manufacturing data.
Investors noted spiking volatility as liquidity sloshes back into markets following the summer.
