NVDA Dominates the Market Once Again

Unprecedented Gains

The AI giant NVDA has once again taken the market by storm, with a rapid acceleration due to a gamma-squeeze. This has resulted in significant gains, with a staggering 4500% increase in one day. This surge has brought NVDA within $100 billion of AAPL's market cap, adding almost $500 billion since last week's earnings.

Market Impact

As NVDA soared, major indices fell from Friday's cash market close. The Dow was hit the hardest, followed by Small Caps. Nasdaq tried to maintain a green close while the S&P faded. The last-minute ramp made the day's outlook slightly better. However, Nomura's Charlie McElligott believes this could lead to a grinding move higher or conditions for a crash-down in the medium to long term, given the degree to which investors' long exposure has been rebuilt.

Other Market Movements

NVDA wasn't the only thing on the rise today. Oil prices surged back above $80 (WTI), Gold jumped back above $2360, Bitcoin spiked back above $70,500 overnight, the dollar increased, and US Treasury yields soared after two auctions and stronger than expected macro data. However, Dallas Fed Manufacturing fell more than expected, and the lowest income cohort saw confidence plunge to pandemic lows.

Yields and Dollar Strength

Treasury yields were up across the board with the long-end underperforming. This steepened the yield curve significantly. Interestingly, rate-cut expectations fell significantly on the day. The dollar followed yields higher, and Gold managed to hold gains despite the dollar strength.

Bitcoin and Oil Prices

After 10 straight days of net ETF inflows, Bitcoin extended gains overnight, back above $70,000. However, moves in Mt.Gox-related wallets prompted selling in anticipation of selling pressure to come. Oil prices also soared back above $80 (WTI).

Final Thoughts

While these market movements may seem alarming to some, it's important to remember that market conditions are always changing. It's crucial to stay informed and make investment decisions based on a variety of factors, not just the performance of one company.

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