Saad Ullah
⬤ Nvidia's 6 % plunge during the session - its worst one day loss in seven months - stood out because the S&P 500 ended slightly higher. The split behaviour shows that traders now question the long semiconductor rally.
⬤ By mid day Nvidia had fallen about 4.9 % while the S&P 500 rose 0.23 %. The last time the stock moved so far from the index, its market value sat below 500 billion dollars - a gap of this size is rare. After years of rapid gains, holders now reappraise their forecasts for AI chips.
⬤ The chart told the story - Nvidia's line dropped hard while the S&P stayed flat. The move follows wider caution toward AI names - strong momentum has turned into selective buying. Even though the broad market stays calm, the sector's nerves create sudden price swings.
⬤ The unusual divergence between Nvidia and the S&P 500 hints that tech dynamics are shifting and that AI valuations face a short term reset. Nvidia recorded one of its steepest recent falls - yet the index held steady - evidence that heavy concentration in a few leaders still delivers sharp moves when sentiment toward them changes, even if the wider mood stays intact.
Saad Ullah
