Stock Markets in Free Fall: Global Markets and Top Stocks in Focus

The stock markets began the week with a significant decline, with the S&P 500 dropping by 2.7% and the Nasdaq Composite falling by 3.2%. The Dow Jones Industrial Average also lost 2.3%, while the Russell 2000 Index decreased by 2.7%. All "Mag 7" stocks recorded losses. A weak labor market report from Friday continues to weigh on the market, fueling recession fears. The decline in the Nasdaq also reflects investors' doubts about the AI boom and uncertainty regarding this year's elections. While the Olympics are in full swing, global markets are declining, indicating investors' concerns about geopolitical risks and global economic growth. The London FTSE 100 lost 2%, while the European Stoxx 600 Index fell by over 2.5%, marking its largest three-day drop since June 2022. In Japan, the Nikkei Index fell by more than 12%. Among the S&P 500 stocks that recorded significant movements at midday was Nvidia, whose shares fell by 6.3% in the morning after a possible delivery delay was announced. A design flaw in the Blackwell architecture could delay production and delivery schedules by about three months, as reported by The Information magazine. Deutsche Bank analyst Ross Seymore stated that Nvidia faces minimal financial risk for the upcoming earnings report on August 28, due to strong demand from cloud customers. Seymore emphasizes that demand for artificial intelligence remains robust. Apple's shares lost 4% after Berkshire Hathaway halved its stake. The conglomerate led by Warren Buffett announced on Saturday that it had sold nearly half of its Apple shares in the second quarter. In total, the company divested shares worth $75.5 billion, including its two largest holdings, Apple and Bank of America, increasing its cash reserves to a record $276.94 billion. In contrast, Kellanova stocks rose by 14% in morning trading, leading the gains in the S&P 500 despite the overall downward trend. Packaged food company Mars, known for its confectionery brands like M&M's and Snickers, is considering a potential acquisition of Kellanova, the manufacturer of Cheez-It and Pringles, according to Reuters. An insider told Reuters that it is still unclear whether Kellanova will agree to a deal with Mars. However, a possible acquisition would be one of the largest transactions in the packaged foods sector, considering Kellanova's market value of approximately $24 billion. Stifel analyst Matthew Smith commented that the transaction would further underscore the strength of Kellanova's brands and their growth potential both in North America and internationally. Smith maintains a hold rating on Kellanova shares.