Global Markets Slide as Tech Stocks Lead Sell-Off; Dow Sheds Nearly 500 Points

US and global equity markets fell sharply as tech and retail stocks dragged down major indexes. Nvidia and Home Depot losses weighed on sentiment, while oil stocks rose on higher crude prices. Asian and European markets also declined.

The Dow slumped 498.50 points (1.1%) to 46,091.74, the Nasdaq tumbled 275.23 points (1.2%) to 22,432.85 and the S&P 500 slid 55.09 points (0.8%) to 6,617.32.

Nvidia tumbled by 2.8%. The strength of Nvidia's results and its guidance could have a significant impact on the markets amid recent concerns about an AI bubble. the Commerce Department released a report showing a significant rebound by new orders for U.S. manufactured goods in the month of August. The report said factory orders jumped by 1.4% in August after tumbling by 1.3% in July.

Computer hardware stocks turned in some of the market's worst performances, with the NYSE Arca Computer Hardware Index plunging by 3.7%. Semiconductor and software stocks saw substantial weakness, contributing to the steep drop by the tech-heavy Nasdaq were considerably weak. Home Depot (HD) helped lead the retail sector lower, tumbling by 6.0% after reporting weaker than expected third quarter earnings and cutting its full-year earnings guidance. Oil stocks bucked the downtrend amid a sharp increase by the price of crude oil, driving the NYSE Arca Oil Index up by 1.4%.

Asia-Pacific stocks moved sharply lower. Japan's Nikkei 225 Index plummeted by 3.2%, while Hong Kong's Hang Seng Index dove by 1.7%. The major European markets significant moved to the downside while the French CAC 40 Index plunged by 1.9%, the German DAX Index tumbled by 1.8% and the U.K.'s FTSE 100 Index slumped by 1.3%.

In the bond market, treasuries gave back ground after an early advance but still closed slightly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down 1 basis point to 4.12% after hitting a low of 4.08%.

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