US indices suffer worst session in a month

Nvidia shares post biggest daily loss in over 4 months
Markets await non-farm payrolls data next Friday
63% chance of 25bp rate cut in September


US indices closed with sharp collective losses on Tuesday as recession fears grew again following US manufacturing data, in addition to the seasonal impact of September, which is considered one of the worst months in history for the market.
Data from the Institute for Supply Management showed that US manufacturing activity contracted in August for the fifth straight month due to slowing demand and falling investment as interest rates rose.
Traders are awaiting several labor market reports ahead of Friday's August nonfarm payrolls data, which is likely to influence the Fed's rate cut.
The CME Group's FedWatch tool showed a 63% chance of a 25 basis point rate cut, while the odds of a larger 50 basis point cut were 37%.

Performance of major US indices:


The Dow Jones Industrial Average fell 1.5%, or 626 points, on Tuesday, its worst session in about a month.
The Nasdaq Composite Index fell 3.3%, recording its biggest daily loss in a month, pressured by Nvidia stock, which fell 9.5%, incurring its biggest daily loss in more than 4 months.
The S&P 500 fell 2.1%, its biggest daily loss in a month, pressured by a decline in all major technology stocks known as the Magnificent Seven.

Tesla shares


Tesla shares fell 1.6% on Tuesday, wiping $11 billion off the company's market value in a single day after Reuters reported the electric carmaker plans to produce a six-seat version of its Model Y sedan in China starting in late 2025.
The agency explained that Tesla, owned by businessman Elon Musk, informed suppliers of its factory in the Chinese city of Shanghai to prepare to increase Model Y production by about 10% or more.

Boeing shares


Boeing shares fell more than 7% on Tuesday to close at a 22-month low after Wells Fargo downgraded the planemaker's shares to underweight from equal weight.
The bank also lowered its target price on the company's stock to $119 per share from $185.