Micron Technology, Inc. (NASDAQ: MU) saw its stock take a significant hit on Tuesday, dropping 8% in a single trading session. This sharp decline wasn't an isolated incident but part of a broader market sell-off triggered by disappointing economic data. The weaker-than-expected August 2024 manufacturing report from the Institute for Supply Management ("ISM") sent shockwaves through the market, particularly affecting tech stocks.
The ISM's Manufacturing Purchasing Managers' Index for August came in at 47.2, missing the expected 47.9 mark. While this was a slight improvement from July's 46.8, it still indicated a contraction in the manufacturing sector — a troubling sign for the U.S. economy. This marks the fifth consecutive month of contraction, and investors are rightly concerned about what this means for the broader economic outlook.
The weak manufacturing data triggered a sell-off across the stock market, with technology stocks bearing the brunt of the damage. Apart from Micron's 8% drop, other semiconductor giants weren't spared either. NVIDIA Corporation fell by 9.5%, and Advanced Micro Devices, Inc. saw a 7.8% decline. This kind of broad-based retreat highlights just how vulnerable the tech sector is to macroeconomic shifts.
Tech companies like Micron are highly sensitive to changes in global economic conditions. They rely heavily on complex supply chains and are affected by fluctuations in consumer and business spending. The recent downturn in Micron's stock might leave investors questioning their next move: should they ...
