Nasdaq extends losses because the angst builds forward of Nvidia earnings

Alright, alright, alright… enough about Nvidia already.

Shares of the company are down 4% and the Nasdaq is down 1.4% in a move that’s gone in lockstep. The options market is pricing a +/- move of 9% in NVDA shares when earnings are reported after the bell and that will easily move the Nasdaq 2% tomorrow.

I tend to think this shakes out much like the FOMC decision — lots of angst and then lots of relief.

That said, it takes a lot to justify a $3 trillion valuation and even the slightest sign of distant weakening and the whole AI trade can come unravelled.

Yesterday, I wrote about the short report on SMCI and today, shares are down 26% and have erased much of the meme-style runup to start the year. Easy come, easy go.