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Global stocks sell-off hits Europe and Asia after sharp drop in Nvidia shares

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Global stocks sell-off hits Europe and Asia after sharp drop in Nvidia shares

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European and Asian stock markets slid on Wednesday as investors worried about a potential US economic slowdown and sold highly valued technology stocks following a sharp drop in chipmaker Nvidia’s share price.

The benchmark Stoxx Europe 600 index fell 0.9 per cent while the FTSE 100 lost 0.6 per cent. The falls came after US markets on Tuesday suffered their worst day since the sharp market sell-off at the start of August, driven by weak data on the state of the manufacturing sector.

Technology stocks led European declines, with Dutch chipmaking equipment group ASML falling 5.2 per cent.

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The jitters hit Asian markets, with the region’s tech and semiconductor supply chain companies suffering particularly acute losses.

While the immediate trigger for the market turbulence was fear of recession following the weak US data, the declines also highlight investor unease over the high expectations set for technology earnings, particularly from investments in artificial intelligence.

Japan’s Topix finished down 3.7 per cent, with chipmaker Tokyo Electron falling 8.6 per cent. The Kospi 200 in South Korea closed down 3.2 per cent while Taiwanese chip giant TSMC lost 5.4 per cent. Hong Kong’s Hang Seng index was down 1.1 per cent.

“The major reason [for the fall in Asian markets] is and was the data from the US,” said Tomochika Kitaoka, chief equity strategist at Nomura.

“The market has a cloudy view of tech stocks globally . . . we are seeing a natural correction process,” he said.

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The yen strengthened 0.3 per cent to 145.01 against the dollar following a more hawkish tone from the Bank of Japan on interest rates.

US futures pointed to another soft start on Wall Street after Nvidia shed 9.5 per cent, or more than $250bn, on Tuesday. Contracts tracking the S&P 500 and Nasdaq 100 were down 0.3 per cent and 0.4 per cent respectively.

“It’s a flashback to the August crash, after which we bounced back hard,” said Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management, who suggested that alongside the weaker US data, prices of cyclical commodities such as oil and copper also indicated a more sluggish global economy.

“People are also coming back from their annual leave in August and we’re seeing some profit-taking,” he added.

Investors are looking ahead to a range of US jobs data releases this week, including the Jolts job openings data later on Wednesday and, in particular, closely watched payrolls data on Friday.

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Mohit Kumar, an analyst at Jefferies, said the market was unlikely to suffer the same sized moves as early August as investors had reduced their bets on risky assets.

“However, it does mean that the market will be jittery into the payroll data this week,” he said. “We are keeping our modest bullish bias on risky assets despite yesterday’s moves, but we are keeping the size of our positions small.”

Nvidia lost a further 1.4 per cent in after-hours trading following a Bloomberg report that the US Department of Justice had sent the company a subpoena, deepening its antitrust probe.

A person familiar with the matter confirmed the subpoena, which comes as the DoJ assesses whether Nvidia is using its power as the primary supplier of AI data centre chips to disadvantage rivals. In a statement, Nvidia said it “wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them”. The DoJ declined to comment.

Crude oil prices dropped to their lowest point of the year, following falls on Tuesday, over concerns that weak Chinese demand would lead to a surplus on the market. Brent futures, the international benchmark, were down 0.5 per cent at $73.36 while West Texas Intermediate, the US benchmark, shed 0.6 per cent at $69.92.

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Investors also sold off other risky assets. Bitcoin dropped 2.9 per cent to below $55,000 in Asia, its lowest point in a month. Gold, often seen as a haven asset, fell 0.4 per cent.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Win McNamee/Getty Images

The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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US says Kuwait accidentally shot down 3 American jets

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US says Kuwait accidentally shot down 3 American jets

The U.S. and Israel have been conducting strikes against targets in Iran since Saturday morning, with the aim of toppling Tehran’s clerical regime. Iran has fired back, with retaliatory assaults featuring missiles and drones targeting several Gulf countries and American bases in the Middle East.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation,” Central Command said.

“The cause of the incident is under investigation. Additional information will be released as it becomes available,” it added.

In a separate statement later Monday, Central Command said that American forces had been killed during combat since the strikes began.

“As of 7:30 am ET, March 2, four U.S. service members have been killed in action. The fourth service member, who was seriously wounded during Iran’s initial attacks, eventually succumbed to their injuries,” it said.

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Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” Central Command added.

This story has been updated.

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