Global stocks fall amid fears of economy recession

Shares of American chipmaker Nvidia fell nearly 10% as economic concerns outweighed the optimism surrounding the artificial intelligence (AI) surge, according to News.Az, citing foreign media.

On Wednesday, major Asian markets also declined following sharp losses in key New York stock indexes.

Investor sentiment grew more cautious as fresh data revealed that US manufacturing activity remains sluggish, shifting attention to the upcoming key jobs report set to be released on Friday.

Nvidia dropped nearly 10%

Shares in US chipmaker Nvidia plunged nearly 10% on Tuesday, erasing almost $300 billion (£228 billion) from the company's market value in the largest single-day drop in US stock market history.

Nvidia had enjoyed a massive surge in value over the past year, more than doubling as excitement grew around artificial intelligence (AI) and the company's pivotal role in powering AI technology. This year alone, its value soared 150%, making it one of the few companies—alongside Microsoft and Apple—to surpass a $3 trillion (£2.28 trillion) valuation.

However, on Tuesday, Nvidia's market value fell by 9.5%, wiping out $279 billion (£212 billion) after US manufacturing data fell short of expectations. The disappointing figures fueled investor concerns about the health of the broader economy, with key US job data expected on Friday and an interest rate decision due next week.

Major Asian and US indexes dropped

U.S. stock indexes lost more ground Wednesday, with declines in the technology, energy and other sectors adding to Wall Street's losses a day after the market’s worst skid in a month.

Japan's Nikkei 225 fell 4.24% to close at 37047.61, while the broad-based Topix dropped 3.65% to 2633.49.

In New York on Tuesday, the S&P 500 index closed more than 2% lower, while the technology-heavy Nasdaq fell by over 3%.

Nasdaq-listed Nvidia fell by 9.5%, wiping $279bn (£212.9bn) off its stock market valuation.

Other US tech giants - including Alphabet, Apple and Microsoft - also saw their shares tumble.

On Wednesday morning, Japan's Nikkei 225 was down 4.4%, South Korea's Kospi was trading 3% lower and the Hang Seng in Hong Kong dropped by 1.3%.

Major Asian technology firms including TSMC, Samsung Electronics, SK Hynix and Tokyo Electron were sharply lower.

Global stocks have faced significant declines as growing fears of an economic recession weigh heavily on markets. Concerns over rising inflation, tightening monetary policies, and weaker-than-expected manufacturing data have left investors uncertain about the future. The upcoming release of key economic indicators, such as jobs data and interest rate decisions, is adding to the uncertainty, prompting cautious market behavior. While some analysts remain optimistic about long-term growth, short-term volatility is likely to persist as global markets react to these economic challenges. Investors are advised to remain vigilant as the economic outlook continues to evolve.

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