Nvidia(US:NVDA) Zhi Tong Cai Jing·2025-11-21 00:44Core Viewpoint - The U.S. stock market experienced its most severe intraday reversal since April, with major indices hitting their lowest levels in over two months, leading to confusion among Wall Street traders regarding the underlying causes [1][3]. Market Performance - The S&P 500 index initially rose by 1.9% within the first hour of trading but ultimately closed down by 1.6%, resulting in a loss of over $2.7 trillion in market value [3]. - The Nasdaq 100 index led the decline, closing down 2.4%, with a cumulative drop of 7.9% from its record high on October 29 [3]. - The VIX index, which measures expected stock volatility, closed above 26 for the first time since April, indicating increased market uncertainty [3]. Company-Specific Impacts - Nvidia's stock was significantly affected, initially rising by 2.4% before falling by 3.2%, leading to a market cap loss of nearly $400 billion from its intraday high [4]. - Despite Nvidia's revenue forecast exceeding expectations, concerns about the sustainability of AI chip spending led to a lack of positive investor response [4]. Economic Indicators and Concerns - The S&P 500 index has dropped over 5% from its October peak and has fallen below the 100-day moving average for the first time since February, closing at its lowest level since September 11 [6]. - The sell-off was particularly pronounced in high-risk sectors, with a heavily shorted stock index down 3.5% and Goldman Sachs' unprofitable tech company index down 3.7% [6]. Analyst Insights - Analysts highlighted various unresolved economic and market issues, including labor market strength, tariffs, inflation, and the sustainability of AI investments [7]. - Concerns were raised about the high valuations of stocks and the implications of recent debt financing trends on shareholder returns [7][8]. - The potential for further selling pressure was noted, particularly if the market continues to decline, as systematic strategies remain in a fragile state [8].