All eyes on Nvidia (NVDA).
The stock has been weakening all morning long in the pre-market following Friday’s sharp intraday reversal that caught a lot of investor attention.
With macro data and earnings releases this week on the slower side, the action in Nvidia is likely to dictate the broader market’s moves.
Some call-outs from various notes this morning:
“At one point on Friday, the third largest company in the world, Nvidia, was up 92% YTD. The 5-month return for the S&P 500 semi-index was 84%, the highest since 1999. A consolidation in the AI trade has been overdue for a while now, so Friday’s key reversal day could signal the start of that unwind.” -BTIG
“In 2000 years I’m not sure if $250 billion has ever been wiped off a stock in 3 hours before. That’s what happened to Nvidia on Friday as the stock went from being around +5% up to -6.5% down intraday before closing -5.55%. Then in after-hours trading on Friday, it was down almost another -3%. Remarkably it was still up +6.38% on the week, +21.3% in March so far, and has still posted a tenth week of consecutive gains. That said, the sell-off late in the week meant the S&P 500 (-0.65% Friday) was down -0.26% for the week, and just missed out on advancing for 17 of 19 weeks for the first time since 1964.” -Deutsche Bank