Global Markets Crash Following Sharp Decline in Tech Stocks and Predictions of Slower Economic Growth

Global stock markets fell on Wednesday, September 4, due to a sharp decline in technology stocks and predictions of slower economic growth worldwide. Oil prices reached their lowest levels in recent months, and bond prices increased. Major stock exchanges in London, Paris, and Frankfurt saw declines ranging from 0.6% to 0.9%. Among them, semiconductor and chip manufacturing companies were the biggest losers, with the stock value of the 'AMSL' holding company dropping by over 5%. The aftershocks of the market crash in Europe also affected Wall Street on Wednesday. By the time this report was prepared, the 'S&P 500' and 'Nasdaq' stocks showed declines of 0.4% and 0.5%, respectively. Wall Street had closed on Tuesday, September 3, with a significant drop in stock prices. AI company Nvidia experienced a $279 billion drop in value, raising serious concerns among investors regarding AI-related stocks. According to this report, September has been a bad month for stocks. However, analysts attribute the market crash to other factors as well, including weak manufacturing data in the United States and increasing market volatility. The price of Brent crude oil futures fell by 0.6% to $73 per barrel, while U.S. crude oil also dropped similarly to below $70. Concerns about slowing economic growth in China, the world's largest oil importer, and the potential for global growth reduction—which would mean decreased fuel demand—have contributed to falling oil prices. According to Reuters, technology stocks in Asia have also been affected. The Japanese chip testing equipment manufacturer Adventist, a supplier to Nvidia, lost nearly 7% of its value. Vishnu Varathan, head of macro research in Asia, stated, 'Many factors contributed to the market crash: Nvidia, technology, U.S. economic data, and the uncertain growth situation in China.' Nonetheless, the exchange rate of the dollar in Asian markets remained stable. Observers believe that given the central bank's focus on the labor market, the outlook for U.S. economic data, which will be released on Friday, September 16, and includes statistics on job opportunities, unemployment claims, and non-farm payroll reports, could determine whether interest rates on bank loans will be regularly reduced this month. Economists participating in a Reuters survey have indicated that the U.S. economy is expected to have created 160,000 jobs in August, showing an increase compared to July.