Nvidia’s US$279 Billion shares drop, Indodax security breach platform shutdown, Fed’s 50bps rate cuts since covid, BREN price drop post removal from FTSE
By Falito VIllienuve Tandra, Iman Satyo Adi, and Salma Farah Faiza
October 4, 2024 at 16:30 GMT+7
Nvidia corporate headquarters in Santa Clara, California | Source: NVIDIA/Handout via REUTERS/File Photo
Nvidia's stock plunged over 9%, wiping out US$279 billion in market value, the largest one-day loss in U.S. history. The drop, driven by U.S. economic data concerns and a Department of Justice antitrust subpoena, caused a widespread sell-off in the semiconductor sector, affecting companies in Asia and Europe.
Major firms like SK Hynix, Samsung, and TSMC saw sharp declines, reflecting Nvidia's interconnected global supply chain. The historic loss underscores the tech sector's vulnerability to market fluctuations and investor caution amid economic uncertainty.
CEO of Indodax, Oscar Darmawan | Source: Doc. INDODAX
Indodax, one of Indonesia's largest cryptocurrency exchanges, faced a hacking incident resulting in US$18.2 million in losses. Over 150 suspicious transactions were detected, prompting a platform shutdown for investigation and security measures.
Bappebti, the regulatory body, is closely monitoring the situation and advising investors to remain calm. Indodax CEO Oscar Darmawan reassured customers that their funds are secure, and the platform will resume operations once security is confirmed. The incident highlights the importance of robust security in Indonesia's growing cryptocurrency market.
U.S. Federal Reserve Chair Jerome Powell | Source: MANDEL NGAN/AFP VIA GETTY IMAGES
The Federal Reserve cut interest rates by 50 basis points, marking its first significant reduction since the COVID-19 pandemic. This move reflects growing concerns about the U.S. job market and economic uncertainty.
The Fed aims to boost consumer spending and business investment while managing inflation risks. Projections include further rate cuts through 2026, targeting a gradual reduction in borrowing costs.
Fed Chair Jerome Powell emphasized a cautious approach, balancing inflation control with the need to sustain employment. Financial markets reacted with volatility and reflecting investor adjustments to the evolving economic landscape.
Prajogo Pangestu | Source: Dimas Ardian/Bloomberg
PT Barito Renewables Energy Tbk (BREN) experienced a sharp stock price decline after being removed from the FTSE index, dropping 19.95% to Rp8,825 per share. This marked its lowest point since August 2024, following a previous surge above Rp12,000.
The delisting, effective September 25, 2024, was due to BREN’s failure to meet the 5% free float requirement, as 97% of shares were controlled by four major shareholders. BREN's market capitalization fell by over Rp500 trillion, raising investor concerns. BREN disputed FTSE’s decision, citing compliance with regulatory obligations during its IPO.
Sam Altman, CEO of OpenAI, at an event in Seoul, South Korea | Source: Bloomberg
OpenAI Valuation Soars to US$157 Billion After Funding Round
OpenAI raised US$6.6 billion in new funding, nearly doubling its valuation to US$157 billion. Led by Thrive Capital, with support from Microsoft, Nvidia, and SoftBank, the company reported a projected US$5 billion net loss on US$3.7 billion revenue in 2024, aiming for US$11.6 billion revenue next year.
OpenAI plans to expand its leadership in AI research, increase compute capacity, and develop advanced tools. With over 250 million weekly ChatGPT users, OpenAI aims to make AI a widely accessible resource, working with partners to shape a future that benefits humanity.
Sources:
CNBC
Bloomberg
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WSJ
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