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<p class="has-drop-cap">Global markets tumbled Monday as fears of a U.S. recession intensified, sparked by disappointing jobs data and compounded by a <a href="https://www.theverge.com/2024/8/3/24212518/nvidia-ai-chip-delay-blackwell-b200-microsoft-amazon-google-openai-meta-artificial-intelligence" target="_blank" aria-label="reported delay (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">reported delay</a> in Nvidia’s (NASDAQ: NVDA) next-generation AI chip production. <br><br>The confluence of events sent shockwaves through financial markets, with U.S. stocks poised for their <a href="https://tokenist.com/us-recession-3-stocks-that-perform-well-when-the-economy-doesnt/" rel="dofollow" class="deco-link">worst opening of the post-pandemic era</a> and Japanese markets experiencing a severe selloff overnight.</p> 
<h3 id="nvidia-chip-delay-rattles-tech-sector">Nvidia Chip Delay Rattles Tech Sector</h3> 
<p>Nvidia, a key player in the artificial intelligence chip market, reportedly faces a setback in the production of its next-generation <a href="https://tokenist.com/nvidia-unveils-new-chip-architecture-analyst-forecasts-10-trillion-valuation-by-2030/" rel="dofollow" class="deco-link">“Blackwell” B200 AI chip</a>. <br><br>Sources familiar with the matter indicate that a design flaw, discovered late in the production process during test runs with Taiwan Semiconductor Manufacturing Company (NYSE: TSM), has pushed back the timeline by at least three months. Mass shipments of the chips, initially slated for late 2024, may not occur until early 2025.</p> 
<p>The delay has far-reaching implications for the tech industry. Major cloud providers, including Microsoft (NASDAQ: MSFT), Google (NASDAQ: GOOG), and Meta (NASDAQ: META), have reportedly ordered tens of billions of dollars worth of these chips.</p> 
<p>The setback could impact Nvidia’s revenue projections and affect competitors like Advanced Micro Devices (NASDAQ: AMD). In response to the news, Citigroup has already cut its fiscal 2025 revenue estimates for Nvidia, and the company’s stock, along with other AI-related stocks, plunged in <a href="https://tokenist.com/investing/how-to-trade-after-hours/" rel="dofollow" class="deco-link">pre-market trading</a>.</p> 
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<h3 id="global-markets-reel-from-us-recession-fears">Global Markets Reel from US Recession Fears</h3> 
<p>The broader market turmoil extends beyond the tech sector. U.S. stocks were set for a sharp decline at the opening bell, with futures indicating drops of 3% for the <a href="https://tokenist.com/3-top-stocks-in-the-dow-jones-worth-holding-in-2024/" rel="dofollow" class="deco-link">Dow Jones Industrial Average</a>, 3.4% for <a href="https://tokenist.com/investing/spx-vs-spy/" class="deco-link">the S&amp;P 500</a>, and 5% for the tech-heavy Nasdaq. This would mark the third consecutive day of significant drawdowns in U.S. markets.</p> 
<p>The selloff was <a href="https://tokenist.com/us-tech-stocks-plunge-amid-fears-of-an-upcoming-recession/" rel="dofollow" class="deco-link">triggered</a> by Friday’s worse-than-expected U.S. jobs report, which showed the unemployment rate unexpectedly climbing to 4.3%. <br><br>The data heightened concerns about a potential recession and raised questions about the Federal Reserve’s cautious approach to interest rate cuts. As a result, investors flocked to U.S. Treasury bonds as safe-haven assets, pushing the yield on the 10-year note to 3.683%, its lowest level since June 2023.</p> 
<p>The ripple effects were felt globally, with Japanese markets experiencing one of their worst days since the 1987 “Black Monday” crash. One of Japan’s main stock indexes plummeted 12.2%. Cryptocurrencies were not spared, with <a href="https://tokenist.com/investing/how-to-invest-in-bitcoin/" rel="dofollow" class="deco-link">Bitcoin (BTC)</a> falling nearly 14% to around $50,000 and Ethereum (ETH) dropping 17% to about $2,200.</p> 
<p>As markets opened for the week, major tech companies faced significant pre-market declines, with Nvidia down 14%, Apple (NASDAQ: AAPL) down 9%, Amazon (NASDAQ: AMZN) down 8%, and Microsoft down 5%. </p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p> 
<h3 id="br"><br></h3> 
<p>The post <a rel="nofollow" href="https://tokenist.com/nvidia-chip-delay-compounds-anxiety-over-recession-risk-ai-stocks-slide/">Nvidia Chip Delay Compounds Anxiety Over Recession Risk, AI Stocks Slide</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Nvidia Chip Delay Compounds Anxiety Over Recession Risk, AI Stocks Slide

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