Wildest Trading Day Since Tariff Shock to Test Dip Buyers’ Nerve

Core Insights - Nvidia Corp.'s strong earnings forecast failed to revive investor confidence, leading to a tech market downturn and a mixed jobs report that left investors uncertain about their next steps [1][4][6] Market Dynamics - Goldman Sachs' trading desk noted an increase in shorting across macro products, contributing to the market rout, alongside poor liquidity in S&P 500 futures, which fell below $5 million compared to a one-year average of $11.5 million [2] - The trading desk had previously indicated that the market was set for a rebound after a four-week slump, highlighting sectors like quantum computing, crypto, and rare earth metals as showing potential [3] Investor Sentiment - Many investors had positioned themselves for a rise in tech stocks, particularly Nvidia, but faced losses as the stock dropped 3.2% on Thursday, leaving them with few catalysts for a year-end rally [4][6] - The VIX, Wall Street's fear gauge, surged by 19% intraday, indicating heightened volatility and uncertainty among traders [6] Retail Sector Insights - Upcoming catalysts for investors include Black Friday retail sales and the Federal Reserve meeting, although retail trading volume has decreased significantly, dropping nearly a third from 16% to 11% of overall US equity trading volume [7]