US tech stocks prolonged losses on Wednesday morning, coming off a steep sell-off fueled by worries about economic growth and the AI trade amid a slide in Nvidia (NVDA) shares.

The S&P 500 (^GSPC) was just under the flat line, while the tech-heavy Nasdaq Composite (^IXIC) led the losses declining about 0.4%. Meanwhile, the Dow Jones Industrial Average (^DJI) added about 0.2%.

Stocks are pulling back as Nvidia shares slump, a sign that faith within the AI boom that has driven much of this 12 months’s gains is seeping out of the market. The AI juggernaut lost $279 billion in market value on Tuesday, and its shares were lower by about 1% Wednesday morning after US regulators reportedly stepped up an antitrust probe.

At the identical time, concerns about cracks within the US economy have revived somewhat after a lukewarm reading on factory activity. Investors are keeping a watchful eye on fresh data as they calibrate the likely size of the Federal Reserve interest-rate cut expected inside weeks.

The rocky begin to September now has investors bracing for more volatility, as a historically tough month for stocks follows a turbulent August. Though markets managed to shake off that month’s losses, analysts suggest stocks will not be within the clear yet.

Also on Wednesday, data showed job openings fell to 7.67 million in July, the bottom level since January 2021, and furthering signs of labor market cooling. After the information markets moved to cost in a virtually 50% probability the Federal Reserve slashes rates of interest by 50 basis points by the tip of its September meeting, up from a 38% probability the day prior, per the CME FedWatch Tool.