Markets slide as Nvidia shares plunge almost 10%

Markets slide as Nvidia shares plunge almost 10%\n\nThe news came after the US government sent subpoenas to Nvidia and other companies as part of its AI probe.\n\nAmerican chip giant Nvidia was hit particularly hard, slumping by almost 10% as optimism about the boom in artificial intelligence (AI) dampened.\n\nData showed US manufacturing activity remains subdued, with investors now focussed now on key jobs figures due on Friday.\n\nShare prices in Asian and US markets have tumbled as concerns grow that the world\\'s largest economy could be headed towards a recession.\n\n"Growth concerns are dominating market moves," Julia Lee at FTSE Russell told the BBC.\n\nIn New York on Tuesday, the S&P 500 index closed more than 2% lower, while the technology-heavy Nasdaq

fell by over 3%.\n\nNasdaq-listed Nvidia fell by 9.5%, wiping $279bn (£212.9bn) off its stock market valuation.\n\nOther US tech giants — including Alphabet, Apple and Microsoft — also saw their shares tumble.\n\nOn Wednesday morning, Japan\\'s Nikkei 225 was down 4.4%, South Korea\\'s Kospi was trading 3% lower and the Hang Seng in Hong Kong dropped by 1.3%.\n\nMajor Asian technology firms including TSMC, Samsung Electronics, SK Hynix and Tokyo Electron were sharply lower.\n\n"Concerns around global growth look to be hitting exporting countries in the region particularly hard," Ms Lee added.\n\nThe highly-anticipated US non-farm payrolls jobs market report is due to be released on Friday.\n\nInvestors will be watching those figures closely for clues on how much

the US Federal Reserve will cut interest rates by when officials meet next week.\n\nSwetha Ramachandran, fund manager for Artemis Investment Management in London, said Nvidia’s share price fall may also be a reaction the US Department of Justice was requiring the firm to give evidence over anti-trust issues.\n\nShe also said it could a matter of “expectations catching up with reality” for the AI giant.\n\n“[Nvidia] did report results last week where it alluded to a natural and expected deceleration in growth: from having delivered 122% growth in the second quarter it expects to deliver 80% growth in the third quarter.”\n\nShe added that the US indexes were likely down because investors were feeling less confident that the Federal Reserve will cut interest rates.