Mon Oct 07 16:53:42 UTC 2024: ## US Stocks Plunge as Tech Sector Tanks, Oil and Gas Surge

**New York, October 2, 2023** – US stock markets closed in the red on Tuesday, with major tech stocks leading the decline. The Dow Jones Industrial Average dropped 0.41%, the Nasdaq Composite fell 1.53%, and the S&P 500 slipped 0.93%.

The tech sector experienced significant losses, with NVIDIA and Intel falling over 3%, and Microsoft, Broadcom, Qualcomm, and AMD plunging over 2%. The semiconductor and consumer electronics sectors also saw notable drops, with Navitas Semiconductor, Arm, NXP Semiconductors, and KLA Corp all declining.

However, the oil and gas sector bucked the trend, with US Energy surging over 13%, Apache Corporation increasing more than 4%, and Occidental Petroleum and ConocoPhillips rising over 3% each.

The S&P 500 Volatility Index (VIX), known as the fear index, closed at 19.26, its highest level since mid-September, indicating rising trader concerns.

Despite the overall market downturn, the Nasdaq Golden Dragon China Index soared 5.48%, driven by gains in Chinese ADRs.

**Manufacturing Contraction Persists**

The Institute for Supply Management (ISM) reported that US manufacturing activity contracted for the sixth consecutive month in September, with the ISM manufacturing index coming in at 47.2, unchanged from August. A reading below 50 indicates contraction.

While the data shows continued weakness in the manufacturing sector, analysts suggest that cheaper input materials like oil could help lower finished product prices and curb service sector inflation, potentially allowing the Federal Reserve to continue reducing interest rates to prevent labor market deterioration.

**Looking Ahead**

Despite the current challenges, some businesses believe the decline in demand may be temporary, linked to the upcoming US presidential election. The prospect of interest rate cuts has bolstered confidence in the long-term outlook, with expectations that improved political conditions could revive demand due to lower borrowing costs.

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