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U.S. Stock Market Adjustment Signal? Nvidia Performs Well but Nasdaq Volatility Rises Sharply

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Source: TokenPost Original Title: [US Stock Market News Briefing] A Signal of Correction for Big Tech? Nasdaq Volatility Surges Despite Strong Nvidia Earnings Original Link: The upward momentum of the Nasdaq driven by the AI boom shifted after Nvidia’s earnings report, with the market showing mixed trends. As concerns over overvalued big tech companies rise, the market has entered a phase of readjustment, which some analysts view as a healthy correction.

Nasdaq Volatility Soars…VIX Index Rises to 27

Over the past week, the volatility index (VIX) surged from 12 to 27, indicating growing market anxiety. The Dow Jones index rose 1.08%, while the S&P 500 fell 0.98%, showing a mixed performance.

Strong Nvidia Earnings But Stock Price Reverses Downward

Nvidia’s third-quarter revenue grew by 62%, but its stock closed down 1.76%, revealing a disconnect between AI investment enthusiasm and actual stock performance. Increases in accounts receivable and deepening reliance on specific customers have become major risks of concern for the market.

Mixed Performance Among Big Tech Stocks…Market Reassessment Begins

Apple, Amazon, and Alphabet shares rose, while Microsoft, Tesla, Broadcom, and others declined. Notably, demand for Oracle’s credit default swaps (CDS) has increased, indicating the market is responding to AI supply chain risks.

Background Factors of Market Correction

Weakened expectations for interest rate cuts and mixed employment data are main reasons for the increased Nasdaq volatility. In particular, excessive AI optimism and the concentration in tech stocks are key drivers of the correction.

Commodities and Financial Market Responses and Future Outlook

Gold rose, oil fell, and the Nasdaq is still up 16% compared to the start of the year. Experts caution against excessive optimism and recommend a long-term investment perspective focused on high-quality tech stocks.

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