Morgans AM: Thursday, 1 September 2022

Morgans Financial Limited

US equity markets extended declines into a fourth session as selling accelerated in the final ten minutes of the session to cap a tough month - Dow fell -280-points or -0.88%. Walt Disney Co (down -0.31%) is exploring a membership program similar to Amazon Prime, according to a report in The Wall Street Journal, with perks designed to encourage customers to spend more on streaming, resorts and merchandise. The broader S&P500 -0.78%, with Materials (down -1.21%) and Consumer Discretionary (-1.05%) falling over >1% to lead ten of the eleven primary sectors lower. Communication Services was the only sector to settle in positive territory, eking out a +0.01% gain. The Nasdaq -0.56%. Nvidia Corp fell over >6% in extended trading (following a -2.42% drop in the regular session) after the chipmaker said the U.S. government is restricting sales in China. Nvidia said the U.S. government told the company on 26 August about a new license requirement for future exports to China, including Hong Kong, to reduce the risk that the products may be used by the Chinese military. The small capitalisation Russell 2000 lost -0.62%. Snap Inc rose +8.69% following a report that said the Snapchat parent company plans to lay off 20% of its 6,400 employees in a round of layoffs that will begin immediately. Alibaba Group Holding gained +1.67% and Chinese e-commerce peer JD.com Inc +3.22%. The two companies are reportedly among a first group selected for inspection by U.S. audit authorities in the wake of a landmark bilateral deal between the U.S. and China over financial transparency for U.S.-listed Chinese stocks.