Nvidia is sinking the stock market
The S&P 500 was down 1% at its lows of the day and Nasdaq 100 was off more than 2% – and there’s one stock that deserves a lot of the blame.
Shares of Nvidia have plunged 5.6% as of 1:50 pm ET for no apparent reason (but hey, nobody was complaining when it was up 2 to 3% seemingly every other day, for months, on little fresh information!).
At its lows during the day, Nvidia had traded right to about where the stock had opened following the release of its earnings report in late May. More money has changed hands trading Nvidia so far today than the next four most heavily traded stocks combined. Call volumes, however, remain fairly low, growing evidence of the drop-off in speculative interest for Nvidia as well as other members of the so-called Magnificent Seven.
The VanEck Semiconductor ETF is also deep in the red, but much less so than the AI chipmaker.
More stocks in the S&P 500 are up than down as of 1:50pm ET — another example of the very odd dynamic where you can hedge your exposure to the stock market through holding the stocks in the market.
