Wall Street's Rollercoaster: Dow Droops, Nasdaq Wobbles, Amid Factory Slip and NYSE Glitch

Wall Street experienced a volatile Monday, with the Dow, S&P 500, and Nasdaq all showing declines amid signs of weakening manufacturing sector performance and a technical glitch on the NYSE. Nvidia shares rose on AI chip announcements while GameStop surged following a significant bet by Reddit influencer Keith Gill.

Reuters | Updated: 03-06-2024 22:23 IST | Created: 03-06-2024 22:23 IST
Wall Street's Rollercoaster: Dow Droops, Nasdaq Wobbles, Amid Factory Slip and NYSE Glitch
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(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.) *

NYSE Equities says technical glitch resolved *

US factory activity slips for a second month in May, ISM says *

Nvidia up as next-gen AI chip platform to be rolled out in 2026 *

GameStop soars after Keith Gill's Reddit post shows $116 mln bet *

Indexes: Dow down 0.83%, S&P down 0.43%, Nasdaq down 0.02% (Updated at 12:16 pm ET/1616 GMT)

By Lisa Pauline Mattackal and Johann M Cherian June 3 (Reuters) -

Wall Street's main indexes were lower in choppy trading on Monday after data showed signs of weakness in the manufacturing sector and investors grappled with technical problems on the NYSE. A

technical issue related to Limit Up-Limit Down bands on the NYSE showed unusual movements and sent dozens of stocks listed on the exchange into volatility pauses. NYSE Equities said the issue had been resolved and the affected stocks were in the process of reopening.

Also weighing on sentiment, a survey from the Institute for Supply Management

showed U.S. manufacturing activity eased to 48.7 in May, lower than the expectation of 49.6. The Dow extended losses, the S&P 500 turned lower and the Nasdaq pared early gains, though falling Treasury yields initially helped lift megacap stocks.

AI leader Nvidia rose 3.3% after CEO Jensen Huang said on Sunday that the company's next-generation AI chip platform would be rolled out in 2026. Shares of megacaps including Apple and Meta gained between 0.8% and 2.1%, as yields on the benchmark U.S. 10-year and five-year notes fell around 10 basis points each.

GameStop soared 24.1% after a weekend Reddit post from stocks influencer Keith Gill, also known as "Roaring Kitty", showed a $116 million bet on the gaming retailer. "The way we closed Friday was so powerful to the upside that we may have had to work off some steam from that. Throw meme stocks and a technical glitch into the mix, and it's no wonder that markets are bouncing around a little bit today," said Bret Kenwell, US investment and options analyst at eToro USA.

All three of Wall Street's main indexes ended May with strong gains, with the S&P 500 up 4.8%, the Dow gaining 2.3% and the tech-heavy Nasdaq rising nearly 7% on the month, as strong earnings and hopes of easing monetary policy buoyed Wall Street's biggest stocks. Traders see a 59% chance that the Fed will begin cutting rates in September, up from about 53% before the ISM data was released, according to the CME's FedWatch tool.

Attention turns to a data-packed week that includes surveys on the services sector, factory orders and Friday's closely watched nonfarm payrolls report, providing investors with clues on the health of the U.S. economy and the Fed's likely course of action. "There may well be a rate cut in September... this will be a week that is full of economic data that'll be important and today was just the first step," said Art Hogan, chief market strategist at B. Riley Financial.

At 12:16

a.m. ET, the Dow Jones Industrial Average was down 321.96 points, or 0.83%, at

38,364.36 , the S&P 500

was down 22.43 points, or 0.43%, at 5,255.08

, and the Nasdaq Composite was down 3.45 points, or 0.02%, at

16,731.56 .

The Dow underperformed, with losses in financial stocks such as Goldman Sachs and JPMorgan Chase & Co being the biggest drags on the blue-chip index. Declining issues outnumbered advancers

by a 1.18-to-1 ratio on the NYSE

and by

a 1.13-to-1 ratio on the Nasdaq .

The S&P index recorded 23

new 52-week highs and three new lows, while the Nasdaq recorded 57

new highs and 77

new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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