Nvidia(US:NVDA) Zhi Tong Cai Jing·2025-11-21 12:52Core Viewpoint - The recent downturn in the stock market, particularly affecting technology stocks like Nvidia, has left investors in a dilemma between cutting losses or reinvesting, exacerbated by poor employment data and increased short-selling activity in macro products [1][2]. Group 1: Market Dynamics - Goldman Sachs' trading department noted a rise in short-selling across various macro products, contributing to the stock market's decline [1]. - The liquidity in the market has worsened, with the S&P 500 futures ToB depth indicator dropping below $5 million, compared to an average of $11.5 million over the past year, which may increase market volatility [1]. - Goldman Sachs predicts a significant options expiration day on Friday, with $3.1 trillion in nominal value options expiring, including $1.7 trillion in SPX index options and $725 billion in individual stock options, which typically leads to market fluctuations [1]. Group 2: Investor Sentiment - Following Nvidia's earnings report, there was a strong buying trend in options, indicating that investors were preparing for a stock rebound rather than hedging against a downturn [2]. - The VIX index, a measure of market volatility, surged by 19% during the trading session, reflecting heightened fear among traders [5]. - Investors are questioning what factors could drive market gains by year-end, especially after Nvidia's stock fell by 3.2% [5]. Group 3: Economic Indicators - Upcoming retail sales data for Black Friday and the Federal Reserve meeting are seen as the last remaining catalysts to boost investor sentiment [6]. - Retail trading activity has significantly decreased, with the proportion of retail trading dropping from 16% to 11% of total U.S. stock trading volume [6]. - The U.S. non-farm payroll data exceeded expectations, suggesting economic recovery but also reducing the likelihood of a Federal Reserve rate cut in December, which could further pressure the stock market [6].