Pre-Market Report – Wednesday 4 September: US markets spike lower | SPI down 94

US equities slumped overnight, recording its worst day since the August 5th meltdown driven by economic concerns and a tech selloff. The S&P 500 lost 2.12%, and the NASDAQ 100 fell 3.15%, their worst start to September since 2015 and 2002. September being one of the markets' historically worst-performing months. The Dow traded lower all session ending 626 points lower (-151%). Down 785 points at worst. Small caps Russell 2000 tumbled 3.09%, and the VIX soared 33.25%. Nvidia slid 9.5% wiping out $279bn in market cap, in a record one-day wipeout for a US stock. Chip stocks followed suit pushing the Philadelphia SE Semiconductor index 7.8% lower. Weak US manufacturing data dampened market sentiment, with the manufacturing PMI rising to 47.2 in August, missing expectations of 47.5, marking the 21st monthly contraction in the last 22 periods.

ASX to tumble. SPI Futures off 94 points (-1.17%).

COMMODITIES

• Algorithmic traders extend short oil exposure, adding to downside pressure.
• Oil slumps about 5% as end to Libyan dispute in sight.
• Goldman Sachs exits copper long position; trims price forecast by $5k on weak China demand. 
• Gold at over one-week low on firm dollar, US payrolls data awaited.
• Copper stumbles to two-week low on Chinese demand fears.

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