markets in turmoil. stocks coming off their worst start to a month in more than four years as growth concerns take hold the dow, the s&p 500, and nasdaq all falling between 1% and 3%. futures this morning are pointing to more losses at the "opening bell." and it's not just the u.s. stocks around the world getting hit with south korea turning negative for the balance of the year. europe also opening a short time ago, sharply lower this morning. a live report from london and singapore coming up.

at the center, a chip wreck and nvidia, that stock is actually making history, wiping out nearly $300 billion of market value in a single day. the stock lower again this morning and taking tech and global chip names down with it. it is wednesday, september 4th, 2024. you're watching "worldwide exchange" right here on cnbc. good morning and thank you for being here with us. i'm dominic chu in for frank holland. let's take a check. the major averages coming off the worst day in a month and the worst start in a month since 2020. futures are again offered. you can see the dow has applied lower by 20 points, the dow down by 101 and the nasdaq down by

109. the big story is nvidia, lower this morning after a 9% drop yesterday. the company wiping out a historic $279 billion in market value. that's the most for a single stock in a single day on record. we've got much more on that move and the global ripple effects in just a moment. checking in on the bond market following yesterday's worse than expected factory data, and ahead of friday's key august jobs report. the bench market 10-year yield falling to 3.8%. the 2-year yield, 3.8%. and the 30-year long bond moving lower as well, 4.11% as prices are bid across the board. now, for perspective, even with yesterday's shocking drop, the dow is 17% lower than the record-high. the s&p is still 3% away while

the nasdaq sitting about 8% from its high. massive moves to thedown side, but in concept we're still some of those rarefied levels. red levels following yesterday's session. we have arabile gumede in our london news room with trade out of europe. lin lin is standing by in our singapore studio with our asia action. and arabile, we'll start with you. >> good morning, dom. anything you can do, we can do as well it seems, right? that's what the market is telling us. we've good 2 happening across this market picture, taking the losses across the ftse 100 and the cac going down 0.81%. we've got stories out of the likes of volkswagen where the ceo is looking to meet up with workers as they look to

potentially close at least two plants in germany. that will be the first time in their history doing that. that will be significant in this market play. but, again, it's all about the data, all about the semiconductors. taking a dip across this market picture so far and the negativity seemingly persisting off the backside of what we saw, dom. >> to asia and a very rough seg in japan, that inch you very much for that. taiwan chip stocks getting hit on the back of nvidia. our own lin lin is in singapore with more on the asia market action. what more can you tell us about just how severe it was. >> dom, it really was all of those chip-related names up and down the global supply chain, getting hit really hard, impacting the markets you were just mentioning there. let's kick off with japan, down 0.24%. tokyo electron the bellwether.

it's down 8.5% for the asia session. also softbank, a tech investment company, a majority of arm, falling 7.7%. in south korea, it's the key name of samsung lek troungics and sk hynix. big falls there particularly for sk hynix. that's seen as a proxy and key supplier for the company as well. when we talk about the taiwan markets, it's all about tsmc, the biggest company dragging down the tyex given it's got a 30% waictsing, falling by 5.4%. back to you.

it nvidia closing down 9% after yesterday's session, taking the entire chip sector down with it. cnbc's senior technology reporter arjun kharpal joins us with more from london on the market. how important is this for the stock in the coming days ahead? >> incredibly important, dom. we saw that and the knock-on effect we saw across the world. it was a record-breaking market move yesterday. let me run through some of the numbers for you. nvidia's 9% fall equated to $279 billion of value being wiped off this stock. this was the biggest one-day market capitalization fall for u.s. stock in history. the previous record was actually held by facebook's meta in

february 2022 when it saw $232 drop in value following a 26% fall in the share price after a downbeat result on that day. for nvidia, one focus is the report from bloomberg, the department of justice has sent subpoenas to nvidia and others as part of an antitrust investigation. the doj is investigating whether it's making it harder for customers to switch for others and don't use nvidia products. this is not the first $200 billion plus value for nvidia. it's the fifth time nvidia has lost 1$1200 billion in one session. most recently it saw a market cap wiped off and $208 billion in june. it's incredibly volatile and incredibly important as you said. despite that volatility, despite the fall, the stock remains up 118% this year as investors bet

it will remain the leading ai chip player. back to you. >> now it trades at roughly 32 times forward. valuations have always been a concern. it's the reason why the options market was pricing in such volatility ahead of its earnings report. now that the earnings report is done, what's going to be the driver? sit going to be the macro or is it more about what nvidia's going to say about its own products? >> i think a lot of it is going to be on what nvidia says. one of the interesting things is the valuations in the past year and a half. when you heard earnings, companies used to beat expectations significantly and guide a lot higher. so it continued to stay in check to some extent, but i think now what you are seeing and what the company is projecting is the breakneck growth speeds. they're going to come down as the year-on-year comparisons get

tougher. a couple of things are going to drive this. one is going to be the reception to the new blackwell chips it's expecting to put out into the market later this year and early next year. and secondly is whether what we've heard in this earnings sale is the likes of google, et cetera, continue to spend vast amounts of money on infrastructure. whether that trend is going to continue into next year. i think that's very much what the market is going to focus on. yes, this year, we know the growth rates are coming down a little bit, but what is the visibility going into 2025? and is the growth and demand gonlt to continue as it ramps up? >> arjun kharpal with the latest on the nvidia story. thank you for that. the worst day for the u.s. market since the downturn just about a month ago. joining me now is robert shein.

it's a big sentiment and motivational driver for momentum in the markets. how important do we think the selloff is in the context of where the chips fall into it? >> if you look at nvidia or even the sems which are trading around the globe, the real question is this the effect of a slower economy? look at china. we saw soft patches and data that could play into the fed's hands, maybe a soft landing. the sensitivity of sems has always been there. this is no different. obviously it was a large move. we've been there before with nvidia. >> we've been there before multiple times. in fact many have been nvidia-related, but i'm curious whether this story is very chip

centric and we know they're a leading indicator for technology. we get that. but how much should we worry about the rest of the eck knollgy part of the story or mega caps in general? is it cstill that we have to pa attention to microsoft, nvidia, and everybody else? >> the growth rate or year-over-year comps are slowing. that being said, we still believe that the arms race in the chip world, the semiconductor world is still on. a firsthand you look at the magnificent 7 they're still spending or outspending even there. what we have seen this summer is a broadening out in the economy or the s&p 500, which is very healthy because, quite honestly, the mag nif isn't seven has been leading the show for the last two years.

we need broadening out, and that's what we're seeing. >> what kind of stocks are you talking if it's not going to be somg of the mega cap names? >> when they went from the pause to the rate cut and they did get their soft landing back then, you know, there's sectors like health care that took off. we like eli lilly. it's been one of the top gainers for all the obvious reasons. they're a leader. we also like warren buffett. last week he celebrated miss 94th birthday and joined the trillion-dollar club. broadening out of the market, we've seen health care. you're going to see that play out. in the magnificent 7, we like microsoft as well. >> robert shein of blanke shein.

you can go to cnbc.com for more insight. now let's get a check on the top stories. silvana henao is here with those. good morning. >> sam altman plans to rally investors around building ai infrastructure, apparently moving closer to re. a bloomberg reporting altman is focusing on the u.s. leg of his efforts with a new price tag, totaling tens of billions of dollars. that report adding altman has suspect the first half of the year seeking the u.s. government's approval for a massive data center power plant and chip factory build-out. meanwhile nippon steel is offering an olive branch to buy

uss steal including vice president harris, rallying over the weekend saying uss steel should remain operating. we are seeing shares just fractionally lower in the premarket. and goldman sachs is gaming out the impact of the november 7th election saying they would take a hit if trump takes the white house. should harris and the democrats sweep in november, new spending and kb banded middle income tax would slightly offset investments due to higher corporate tax rates, dom. >> thank you very much for those. we've got a lot more to come here on "worldwide exchange" including one word investors

need to know today. but first much more on the global selloff and the key trends that fundstrat says you need to keep watch. plus, always a bull market somewhere. and later on, looking under the hood, and if our next guest sees any chracks in the chip sector as well. "worldwide exchange" returns after this commercial break.

let's say you're deep in a show or a game or the game. on a train, at home, at work. okay, maybe not at work. point is at xfinity. we're constantly engineering new ways to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island?

all right. welcome back. we're watching u.s. equity futures after wall street's worst day in about a month. now let's bring in mark newton, managing director and global head of fund strat global advisers for the technical, the chart take on some of the selling and the market's possible next move. you know, technical analysis is based on history. we look for patterns to repeat themselves and that sort of thing. as we look at the carnage that's happening over the course of the last day or so, in context of what happened in august and in the broader context of what's been a nice bull run, what are you seeing in the s&p 500? >> thanks, dom. look, as you can see here, we've recovered almost the entire pullback from early august. i think that's the important thing. technology which most say is undergoing real carnage has snapped back. it was the third best performing sector in the month of august. we've seen true damage outside of yesterday. we did break 5550, we're down to

levels, you know, just above 5500. this area near the open gap is going to be really important. that's 5463 or so. so my thinking is in the near term, we don't very in nufgs to say actually it's going to be a larger decline as of now. we've seen yesterday it came out of nowhere. weak data. that caused interest rates to plummet. dollar/yen started to pull back. s&p and nasdaq broke very sharply. this is going to be the key for the s&p. 5550 to 6453 or something. not too much damage at all. a lot of this is technology-based, similar to what this next chart will show. >> let's clear that and show the weighted s&p 500. >> this is important for investors to know. as of last month, we had five sectors that made new all-time

high closes on a monthly bay schlts that's really important. on an equalweighted basis, s&p made new all-time highs as of the end of last month. to think you sell a market at new all-time highs, the odds to some extent are stacked against you. momentum is still positive. we have about 75% of all stocks above their 200-day moving average. that's important. sentiment has got about more optimistic as might have been expected. however, it's not yet too enhas to yas tirks too complacent to say this is the top. we're in september. and one other point, in election years, september is actually not the worst month. we've heard september is the worst month of the year. september can be better than october, which is actually a lot worse than years like this. >> what's interesting is you're

telling us despite the massive amount of damage done yesterday, we haven't seen enough technical damage to say this is the beginning of anything deep ore darmer in terms of the downturn. >> 100% correct. that's because the financials or health care both hit all-time highs last week on an equal weighted basis. we want to strip out the influencers that look at it on an equal weighted basis. the industrials all working very, very well. market breadth is good. it's not like 2007 where you have the majority of sectors peak in the month of may or june. it's actually very well supported. >> let's clear this and move onto another chart. that's small caps versus the s&p 500. the small caps were a big story just about two or three months ago with regard to the catch-up trade. what's happening there now?

>> they have indeed played catch-up off these august lows. you look at the longer-term trend. these are the ratio charts. when you look at what's happened just in the last month, we've seen a very nice breakout in the ratio of small caps. what does that mean? after literally the last couple of years of under performance of the last decade of underperformance, it really peaked in 2014 relatively. they're now starting to play catch-up and kick into gear. i think that's very, very important. i look at trend indicators. we saw our first monthly buy signal for the first time in over a decade. look, small caps will benefit as rates start to pull back. we've seen what i think is the beginning of that. yes, we're in a volatile time, but between now and next spring, we're going to see a nice

catch-up. my target, you know, up near 228 and then 234. >> all right. look at the trend. mark newton with the chart look. thank you very much. we appreciate it. ahead on "worldwide exchange," your big "money movers" and trouble for one high-flying cloud computer stock. that and the mystery chart revealed when we return after this.

what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley

welcome back to "worldwide exchange." time for your big "money movers," big stocks of the morning. shares of zscaler will coming up short after coming up with fourth quarter profit outlooks. earnings and revenue topping expectations with revenue rising 30% from a year ag to just under $593 million, those shares off 15% premarket. a similar story for shares of pagerduty on the back of mixed second quarter results. revenue missing the street's estimates, the digital operations platform showing weaker sales growth and cutting its regular guidance, those shares off. asana lowers its outlook. for second quarter earnings, they posted a smaller than expected loss. those shares down 13.5% in extended trading, and shares of gitlab rallying on the company raising its full year forecast

as more businesses work to integrate ai and security into their technology. gitlab shares bucking the trend, up 17% premarket. as we head out to break, watching two other areas of the market starting with cryptocurrency and bitcoin hitting its lowest level in less than a month. 60,735. taking a look at the rest of the cryptocurrencies, you see 55 for ethereum. wti prices coming off a 4% drop on tuesday, briefly hitting its lowest level since january. they're negative here. you can see wti crude trying to bounce back slightly, up roughly one quter arof 1%. we're back after this .

safe step walk-in tub. with safe step's standard heated seat and new fast fill faucet, you can enjoy a nice warm bath up to 20% faster! and the convenient touch pad control is right at your fingertips. each tub comes standard with a dual hydrotherapy system. the ten water jets can help increase mobility, relieve pain, boost energy, and improve sleep. while the microsoothe advanced air therapy system oxygenates and softens skin. safe step walk-in tubs are built to maximize safety. so you can stay in your home and enjoy the comforts of bathing again. so call now for more information and a free no obligation consultation.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically]

but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. stocks notching their worst start to a month in four years with the major indices falling between 1% and 3%. the selling spreading overseas this morning. big losses across asia with south korea turning negative for the year.

more right across europe with markets there lower in early action as well. a big factor in those losses, nvidia shares, that stock lower after making history for all the wrong reasons, wiping out nearly $300 billion of market value in one single day. and nvidia's fall, the broader technology sector down with it. it's wednesday, september 4th, 2024. you're watching "worldwide exchange" right here on cnbc. welcome back to "worldwide exchange." i'm dominic chu if frank holland on this wednesday morning. let's pick up the check. the major averages are coming off their worst day in the month and a worst start to the month since the year 2020. futures right now are showing signs of weak nsz again, the dow is implied lower by just about

95 points, the s&p 500 by 18 and the tech heavy nasdaq down by roughly 100 points. if we take a look at the biggest laggards on the market cap nasdaq 100 trade, you can see front and center, nvidia is one of those shares, right? but zscaler down half a percent. super micro computer, onsemi conductor, and palo alto is down. nvidia wiped out a historic $279 billion of market in one single day. check out names like taiwan sem conductor, also samsung, asml, all lower today. you can see here. we'll have more on that story in just a moment. that trip drag weighing on wroder asian markets as well. japan's nikkei shedding more

than 4% overnight. shanghai ice kospi index falling. if we take a look at the early action in europe, we're seeing the weakness there as well. the dax index is down twoer thirds, the contact down one quarter and the ftse in italy off 1/2 percent as well. as our colleague jim cramer always likes to say, there's always a bull market somewhere utilities flat yesterday after hitting a 52-week high earlier in the session. they're looking to the sector to paw a dividend. you can see that's the reason why you tilts have been outperformers. the the selloff yesterday was broad broad-based. nvidia, dropping 9.5%, wiping

out $279 billion in value. that's the single largest one-day loss for any u.s. company ever in terms of dollars. this morning's premarket drop the company has been hit with a subpoena from the justice department. nvidia has dropped 14% sense about a week ago and 20% since the all-time highs we saw just this past summer closing on june 18th. nvidia is dragging down other big intel stocks. broadcom down 6%. qualcomm losing 7% as well. these are some of the biggest names in the semiconductor business. check out the ticker smh. it fell 7.5% for its worst day since the start of the covid pandemic believe it or not back in massachusetts of 2020. let's talk more about this with james chuck ma.

james, just how bad was the chip wreck? >> is. >> well, i would say basically going back to june, we've seen things associated with these chip companies. you have to get the cash from somewhere and semiconductors including us where you roll out into more valuated names makes a lot of sense and i think a lot of these names have continued to loft the elevations -- valuations when you have uncertainty on what the growth rate is going to be on a sustainable basis when you look into 2025. >> what kind of macro versus high crow story is there here for computer chips? we know it's been a big part of

the chips story. what happens in a hypothetical scenario if there's a broader slowdown across the globe? >> the good news is the world is still going to move in one direction and that's toward ai, and as companies start to utilize it increasingly so, the earnings are likely to accrue and you're like toy to see that spend continually on a sustaining basis. that growth rate is slowing, but the question is where does that growth rate normalize? the uncertainty around that is likely what's pressuring stocks, but let's not parse words those growth rates are still going to be very attractive according to other industries, but it won't be at levels we saw over the last two years.

>> james, as an asset manager, you have to be paying close attention to what the futures and interest rate markets are telling you about the fed and what's going to happen with rates. what's your expectation? >> this is the least we've had all year. we're increasingly taking the defensive posture since june. that being said, you know, we've seen a lot of false positives in our opinion with the broader economic data that's been coming out. we think that the underlying drivers of that deal are not doing well. so we're very, very sensitive to what's going on. that being said with respect to powell. it seems like the 25-basis point scenario is that scenario.

however, if for some reason the jobs data falls off a cliff, which we don't really think will be the case, then you open up a powell put as we frame it which would open up the door for a 50 basis point cut, and that would be a big surprise. unless the data comes in and offers an alternative scenario this week with jobs on friday, then that's likely going to be the case, and we think that tech as a result will continue to be pressured. >> okay. so utilities and staples, some of the yort performers in your mind. james kakmak, thank you. coming up, headwinds for the micro computer and a moraj target price cut. details when "worldwide exchange" returns after this. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! i want a massage, in amalfi, from someone named giancarlo. and i didn't live in that shoebox for years.

not just— with empower, we get all of our financial questions answered. so you don't have to worry. i guess i'll get the caviar... just kidding. join 18 million americans and take control of your financial future with a real time dashboard and real live conversations. empower. what's next.

what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com. at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before. and with max doing the heavy lifting, even more people can join the team. solar energy is changing the world, aes is changing

the world of solar. welcome back to "worldwide exchange." just a check right now on the some of the premarket dow gainers. the leaders in the premarket session, believe it or not, intel is trying to bounce back, up three-quarters of 1%. travelers, m, unitedhealth, some of the biggest gainers. as opposed to the laggards, am, microsoft, nike, down, and amgen off 1% as well. time now for your morning

call sheet. barclays is downgrading its super micro rate to neutral and slashing its prices, barclay saying there's uncertainty around the company's ai margins and internal controls following its recent delay to its annual report filing. meanwhile there's a price ticket on booking holdings. and morgan stanley upgrading to overweight and bumping its target price to $778 a share, morgan stanley calling the company the fashlgt way to play the beverage can secular growth theme. the stocks are down 7% since their peak hit earlier this year. now it's time for your global briefing. the drop of nvidia and others, semiconductor stocks there and related names posting bigger

losses. taiwan semi-falling more than 5%. in south korea, sk hynix sliding 5% while samsung was 3.5%. tokyo electron falling 8.5% while chip company closing down 8% as well. australia's economy slowing in the second quarter. gdp growing in line with forecasts but that's also the weakest growth rate since the early 1990s. coal and iron ore prices fall. mean while boeing is showing improvement with china, delivering more jets to china in august. that's the most in six years. that eclipses every month since november of 20189 right as regulators grounded the 737 max following two global crashes.

wells fargo downgraded that stock to an outright sell rating. >> ahead, the one word investors need to know today, and countdown to kickoff. the record amount of bets to be placed with the l'nfs new season set to get underway. that story coming right up. we'll be right back. w am i going to do this? welcome to the mdy mid-cap cup, presented by state street global advisors. today's challenge is to play 9 holes without the middle of your bag. how does that sound? that sounds terrible. ♪♪ ♪♪ ♪♪ ♪♪ have you ever thought of getting a walk-in tub for you or someone you love? now is a great time to take a look at getting a safe step walk-in tub. with safe step's standard heated seat and new fast fill faucet, you can enjoy a nice warm bath up to 20% faster!

and the convenient touch pad control is right at your fingertips. each tub comes standard with a dual hydrotherapy system. the ten water jets can help increase mobility, relieve pain, boost energy, and improve sleep. while the microsoothe advanced air therapy system oxygenates and softens skin. safe step walk-in tubs are built to maximize safety. so you can stay in your home and enjoy the comforts of bathing again. so call now for more information and a free no obligation consultation. what is cirkul? cirkul is

the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. ♪♪ [inner monologue] in this gig... you get comfortable being uncomfortable. ♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪ all right. a check on the dow last commercial break. now it's time for the s&p premarket gainers.

ball corps up 2%. eqt, some of your garans. meanwhile the laggards, you have pg&e on the utility side of things, down 4.5%. prologis, super micro computing and hp inc. football fans, myself included, it's time to rejoice. we're less than 24 hours away and americans are expected to bet brid around the action on the gridiron, likely breaking records. contessa brewer with who can be betting? >> no sport is more important to u.s. sports books than the nfl, and mobile betting is fueling incredible growth. for the first time the american gaming association is saying americans will wager $35 billion throughout the nfl season.

that would mean more than 30% growth year on year. since last year we saw maine, north carolina, and vermont launching sports betting and court decisions have relaunching betting in florida. we're shown on average each of the last three years have seen a 71% jump intive sports betting accounts from the summer months. the nl season is so important that they worked to get tech approved in place for n tomb for football. then an acquired points banks operation. now it's in more than 20 states. it's grown its customer data base to 31 million members, showing 80% growth and it's optimistic about its media

integration with espn. fanduel is highlighting its tie-up with youtube and promoting a three-week trial. and this year betmgm has launched the first mobile single wallet in nevada where customers can actually hi take their ktss from las vegas which reduces friction. all of this, dom, is is a way the sports books say they're trying to get new customers. this is the singest most important time. >> it's so interesting because there's been nothing but hypergrowth stories around many of these names. if there is so much of that growth in the narrative around sports betting, why is it that the gaming stocks are not doing as well? >> yeah, it's -- hello, good morning. it's interesting. it's positive on the year. it's the nation's market leader.

they had incredible earnings. year to date it's up 18%. look at the second when draftkings, which we've been talking about, as the single play for so long. draftkings is off 5% and it's down about 30% from its march highs. and they have bricks a mortar. and the one stock i want to highlighted is rough street interactive. much smaller operations in illinois, for instance, 100% year to date. there's been so much to talk about. las vegas continues to set records. they've had quarter on quarter. look at mgm resorts. las vegas sands up 20%. even singapore has been on fire. we're still seeing the ramp-up. i think, dom, there's just a

risk-off attitude when it comes to casinos. >> contessa brewer, thank you very much for that. tomorrow aheaof nhead /* -- ahead of nfl kickoff, we'll pull back the curtain starting at 6:00 a.m. eastern time. be sure to sign up for cnbc boardroom conference bringing together athletes, owners, investors, looking at the unter section of business, sports and entertainment. to register, scan that qr code you see on the screen or visit cnbcevents.com/gameplan. coming up on this show, september selloff. the growing list of challenges our next guest says investors are facing. if you haven't already done so, please follow our podscast. if you miss "worldwide

exchange," check out spotify or your podcast of choice in audio format. we'll be right back.

welcome back to "worldwide exchange." time for your w.e.x. wrap-up. bloomberg is reporting altman is working on a global ai

infrastructure focusing first on the u.s., seeking the u.s. government's approval for new data centers, power plants, and chip factories. nippon steal is offering a new olive branch to critics of its $15 billion deal to buy uss steal. the new board would include three u.s. citizens and the core senior management members of the country would all be american. shares of nvidia are under pressure this morning. bloomberg reporting they've sent a subpoena to the company as part of its antitrust investigation, looking to see whether buyers are able to switch to other buyers and penalizing those who don't buy their chips exclusively. yesterday nvidia wiped out $10 billion of huang's net worth barring today's price action. now another tough day taking shape right now.

futures are pointing toward lower opens. for more, let's get out to mimi duff, managing director. this is a scenario where the fed is going to be key, given all of the stories around fed interest rate cuts. do you think that's appropriate? >> i do think it's appropriate at this point. they do have a mandate. many have a single mandate, but the fed has both maximum employment and inflation fighting and the pressure is off on the inflation side. the jobs picture has shown material weakening in the last print especially. so this week will be very important. >> mimi, given that story, it seems as though some of the market downside volatility has been justified. if that is the case, we've seen government bonds here in the

u.s. go bid. do you feel it is the bond market's time to shine right now versus the stockmarket? >> yeah. i think -- we're underweight equities and overwacts bonds to your point. we think overweights in bonds will play out better over a range of scenarios given that we're entering an easing cycle and the increased volatility. likely we have the election this fall too. we see a lot of risks on the table with the equity market. >> with regard to the equity side of things, a lot of talk. do you still feel as though that story is one you can buy into? earlier in the hour we spoke to mark newton looking at the technicals and the charts. he seems to small caps can youts perform. where do you want to be on equities? >> we're long-term investors to be clear. so we don't have the choice of being the equity markets. we're ucds weight. 6 they should benefit some from

the stabilization and lowering rating. we sort of like the defensive sectors like health care and consumer staples. on the commodities side, we like yuranium for a play on clean energy, we think there's more upside in the coming years there. so we are picking some spots. as you know, the s&p is just so concentrated in these big seven names, whereas the equalweighted s&ps did see an all-time new high the other day. we're starting to see as you pointed out this broadened. >> and this is also a key investor focus now. it's going to be the election coming up in just a couple of months. do we feel as though investors need to change their allocations based upon elections? >> we do not. we think everything known to the elections is priced in, and, you know, we've done some studies on this. it's not even -- the composition of the entire system, who's

running the house, the senate, is also so important. we're not playing for a specific winne or anything like that. >> thank you very much. we appreciate it. see you soon. the markets are in selloff mode right now let's send it over to "squawk box" which picks it up the market by 95 points. good morning. stock pointing to more losses but nothing like yesterday's selloff. nvidia trading lower after a loss of nearly $300 billion in market cap yesterday, just yesterday. crude prices continuing to slide. under 70 for a while despite heightened geopolitical tensions. we will talk about the potential catalyst. and elon musk starling now says it will comply with an order to shut off access to the

platform down in brazil. details straight ahead. it's wednesday, septem septembe 2024, and "squawk box" begins right now. ♪ good morning, everybody, and welcome to "squawk box" right here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. it ooh is been a bit of a restart to the september. we're taking a look right now at the u.s. eck question the i futures. you're going to see red arrows this morning. as joe mentioned, nothing like the selloff we saw yesterday, but you're not seeing the market bounce back. the markets down . it comes after