The stock exchanges in the USA fell on Tuesday, among other things after new figures showing that the American manufacturing industry is doing worse than expected. According to Maria Landeborn, senior strategist at Danske Bank, it is at a level that signals a risk of low economic growth.
There is a fear that growth in the USA is slowing down and people are afraid that it will happen faster than they thought, she says.
For even though inflation has fallen, the economy is weakening and unemployment is rising.
Then there is a risk that it may not be a soft landing. And if we get a harder economic downturn, it usually means stock market falls.
Overvalued?
Annika Winsth, chief economist at Nordea, calls the fall in the USA a correction.
The market is very sensitive now to how the Fed will act. Then you don't just look at labor market data but also at economic data, she says and continues:
When it now comes in weak, it's hard for the stock market to hold out since the listed companies are dependent on the economy.
Not least the technology sector had a tough day yesterday. The semiconductor giant Nvidia fell significantly and lost almost 10 percent.
The fall erased 280 billion American dollars, approximately 2,800 billion Swedish kronor. It is the largest value decline ever for an American company in a single day, according to the news agency Bloomberg.
Yesterday, it was reported that Nvidia is being investigated by the US Department of Justice on suspicion of violating competition laws.
Nvidia, which has created a key position in the ongoing AI race, has been a driving force for the entire stock market development. Some experts have, however, questioned whether the company is overvalued.
There is a small fear that the AI boom has peaked for this time, says Maria Landeborn.
"Gone very fast"
Is this a dip in the curve or the beginning of something more long-term? It's hard to say, she means.
The price increase has gone very fast over the past year and often there are high expectations around new technology and what it will contribute. Then it doesn't go as fast as you think and then you get these kinds of setbacks.
The Stockholm stock exchange also fell in early trading.
