Markets slide as Nvidia shares plunge almost 10%

Financial markets in Asia and the US have tumbled on concerns that the world’s largest economy could be headed towards a recession.

Shares in American chip giant Nvidia slumped by almost 10% as concerns over the economy dampened optimism about the boom in artificial intelligence (AI).

On Wednesday, major Asian indexes dropped after major stock indexes in New York fell sharply.

Investors turned more cautious as new data showed US manufacturing activity remains subdued, with the focus now on key jobs figures due on Friday.

“Growth concerns are dominating market moves,” Julia Lee at FTSE Russell told the BBC.

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 3.3%, South Korea’s Kospi was trading 2.7% lower and the Hang Seng in Hong Kong dropped by 0.7%.

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

“Concerns around global growth look to be hitting exporting countries in the region particularly hard,” Ms Lee added.

The highly-anticipated US non-farm payrolls jobs market report is due to be released on Friday.

Investors will be watching those figures closely for clues on how much the US Federal Reserve will cut interest rates by when officials meet next week.