US Markets Plummet as VIX Surges 39.68% and NVDA Leads Tech Selloff
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The US markets experienced a significant downturn, with the S&P 500 closing at 7,383.74, down -2.64%, and the Nasdaq 100 plummeting -4.77% to 28,957.60. The VIX surged +39.68% to 21.51, indicating increased market volatility.
The tech sector was particularly hard hit, with NVDA leading the decline, down -6.20% to 205.10. The 10Y Yield rose +1.32% to 4.54, while WTI Crude fell -3.00% to 90.25.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,383.74 | -2.64% | |
| Dow Jones | 50,866.78 | -1.35% | |
| Nasdaq 100 | 28,957.60 | -4.77% | |
| Russell 2000 | 2,833.50 | -3.47% | |
| VIX | 21.51 | +39.68% | |
| 10Y Yield | 4.54 | +1.32% | |
| WTI Crude | 90.25 | -3.00% |
Top large-cap movers
NVDA led the decline, down -6.20% to 205.10, followed by TSLA, down -6.56% to 391.00, and AVGO, down -7.92% to 385.73.
Spotlight
| Key Metrics | Value |
|---|---|
| NVDA Close | 205.10 |
| NVDA Change | -6.20% |
| NVDA Volume | 43.1M |
NVDA's decline was driven by concerns over the company's future growth prospects. The stock's -6.20% decline was the largest among the major tech stocks. NVDA's earnings report is scheduled for next quarter, and investors will be watching closely for any signs of weakness.
Macro & Fed
- Current policy rate: 4.50%-4.75%
- 10Y Yield: 4.54, up +1.32%
- Today's data releases:
- 09:30 HKT: Non-Farm Employment Change
- 10:00 HKT: Unemployment Rate
Geopolitics & Global
- Tensions between the US and China continue to escalate, with trade talks stalled.
- The European Central Bank is expected to raise interest rates next quarter.
- Brent crude oil prices are down -2.50% to 95.50 due to decreased demand.
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| Next Quarter | NVDA | Growth prospects and earnings guidance |
| This Week | AAPL | iPhone sales and services revenue |
Stocks Worth Watching
- TSLA: Down -6.56% to 391.00 due to concerns over the company's valuation.
- AVGO: Down -7.92% to 385.73 due to a decline in semiconductor sales.
- JPM: Up +0.48% to 312.37 due to a strong earnings report.
- GS: Down -4.94% to 1,038.68 due to a decline in investment banking revenue.
What Could Break the Tape
A further decline in NVDA could lead to a broader market selloff, with the S&P 500 potentially breaking down to 7,200.
A strong earnings report from AAPL could lead to a rally in the tech sector, with the Nasdaq 100 potentially breaking out to 30,000.