CNBC Daily Open: Nvidia sinks and data’s weak, but stay strong

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

Nvidia sinks
Nvidia shares plummeted 9.5% Tuesday, erasing nearly $300 billion from its market capitalization. Other chipmakers were affected too: The VanEck Semiconductor ETF sank 7.5%. Nvidia's slide continued in extended training, falling 2% after it was reported the company received subpoenas as part of an antitrust investigation.

Hammer's not that hot
The Institute for Supply Management monthly survey showed just 47.2% of purchasing managers reported expansion for August. That means the U.S. manufacturing sector is contracting overall. While the 47.2% figure is an improvement over July's, it's still lower than the expected 47.9%, renewing concerns the U.S. economy's slowing.

Ugly markets
Dragged down by Nvidia's plunge and weak economic data, U.S. stocks had their worst day since Aug. 5's sell-off. European stocks dropped Tuesday, with all major bourses and most sectors in the red, though food and beverage stocks managed to eke out a gain of 0.09%.

Low heat
U.S. crude oil futures fell more than 4% Tuesday to settle at $70.34 a barrel, more than erasing its gains for 2024. Oil's weak showing is primarily because OPEC+ intends to increase oil production, according to Reuters, and exacerbated by continued weakness in China's economy, which dampens demand for oil.

[PRO] Go for gold
When interest rates are high, gold prices tend to suffer — it's not as attractive as other options because it does not generate interest. On the other hand, when geopolitics run hot, gold serves as a good hedge against