Stocks fall as market leaders turn losers

SINGAPORE (Reuters) – Chip stocks dragged Asian indexes lower on Wednesday and European futures fell after growth concerns led to the steepest sell-off in a month on Wall Street and investors wiped out 279 billion dollars off the value of beloved chipmaker Nvidia.

Oil hit year-to-date lows in Asian trade, the safe-haven yen rose, Japanese shares fell more than 3 percent and regional shares outside Japan fell nearly 2 percent. (MKTS/GLOB)

Here’s what analysts and investors have to say about market moves:

NICK FERRES, CIO, VANTAGE POINT ASSET MANAGEMENT, SINGAPORE

“The ISM manufacturing index poured cold water on the benign growth outlook.

“While equities have responded enthusiastically to the dovish rate outlook…a number of key leading indicators suggest that macro conditions look set to deteriorate further going forward. In this context, the S&P 500 valuation multiple, stocks and credit premium provide insufficient compensation. for risk.

“We fear another round of cuts in the coming weeks.”

JUN BEI LIU, PORTFOLIO MANAGER, TRIBECA, SYDNEY

“People are making a bit of a profit.

“There is nothing fundamentally wrong with the stock market. If anything, things are actually looking pretty good. You have 25 basis points to start with and quite a few more to go, and the economy is slowing but not collapsing.

“The next few months are likely to see the nadir of earnings, and for investors, the next few months is where you play in a lot of these opportunities.”

STEVEN LEUNG, EXECUTIVE DIRECTOR INSTITUTIONAL SALES, UOB KAY HIAN, HONG KONG

“Hong Kong is quite weak, so whenever we see a negative signal like this from the US, Hong Kong will perform even worse.

“People think the current situation is different from August because of the resumption of yen trading. This time, not because of that, but more because of the US economy. It’s scarier, because it’s not a technical reason, it’s a more fundamental problem”.

JASON TEH, CIO, VERTIUM ASSET MANAGEMENT, SYDNEY

“The question is how quickly the economy slows while the Fed cuts interest rates because if they are behind the curve, then the markets will continue to sell off. It’s that tightrope right now and the market is trying to figure it out.

“When you look at Nvidia as a market leader, it’s not holding up despite very high profits. There’s an old saying – if the troops can’t follow the generals, it’s a warning sign… if Nvidia and Apple and Microsoft can’t hold their own. up in the market, that is we are in a bear market.”

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MICHAEL ARONE, SPDR CHIEF STRATEGIST, GLOBAL ADVISORS STATE STREET, BOSTON

“What I expect is that we will see a continued rotation away from technology stocks, leading to broader leadership. This is because interest rates and inflation are falling, and that should help narrow the gap in earnings growth between the tech sector and the rest of the market.”

SAM STOVALL, CHIEF INVESTMENT STRATEGIST, CFRA, NEW YORK

“I think investors have just given in to seasonality ahead of what they fear will be a double dose of declines in an election year, both in September and October, and have been piling into those stocks that had a lot of profits reserved.

“This may be a short week, but it will be an important and crucial week for investor confidence; people will stand on their heads.”

STEVE SOSNICK, MARKET STRATEGIST, INTERACTIVE BROKERS, GREENWICH, CT

“There’s a bit of a post-Nvidia earnings hangover going on today. Those gains last week were good; they exceeded expectations. But the scale of the beating is shrinking quarter by quarter, and that’s not lost on investors.

“There’s concern about what the jobs numbers are going to show, seasonality. That’s why the VIX is higher. I don’t think the ISM number, which shows a weaker manufacturing sector but higher prices, It was no help at all. And there you have it.

MICHAEL GREEN, PORTFOLIO MANAGER, SIMPLIFY, SAN FRANCISCO BAY AREA

“People are over-allocated to Nvidia and a lot of these names and trying to reduce that exposure. It just has the potential for these things to sell quite significantly.”

(Reporting by Reuters bureaus in New York and Asia; Compiling by Tom Westbrook; Editing by Sonali Paul)