DeepSeek sell off creates buying opportunity. Nvidia up 9% leading the rebound, reminding us the stock market can be manic. VIX calms. Investors see big tech, the Fed boosting sentiment
DeepSeek sell off creates buying opportunity. Nvidia +9% leading the reversal up that everyone wanted to see. VIX calms. Investors see big tech earnings and Fed boosting sentiment
US stocks sharply whipsawed higher after the DeepSeek sell-off. Nvidia shares led the rebound, rising 9% to US$128.86. That’s encouraging considering Nvidia fell 17% to $118.42 the day prior, losing US$600 billion in value, marking the biggest-ever one-day drop in value for a US company. Not only are investors and traders using the pullback as an opportunity to buy the dip, but we saw Nvidia close at its high of the day after opening at $121.81. This suggests more buyers will probably pounce on Nvidia and push its price back up.
AI, software, and power gird companies whip saw higher - reminding investors the stock market and the tech sector, is sometimes manic
Moving to other moves. Investors heavily bought into downbeat tech and AI-affiliated stocks that were indiscriminately sold off. Cybersecurity giant CrowdStrike$CrowdStrike (CRWD.US)$rose 9.4%, and software giant Palantir$Palantir (PLTR.US)$gained 6.3%. Meanwhile, investors were buying into power grid and uranium companies like Vistra, which rebounded, rising 8%, given that the US is expected to spend US$4 trillion from now to 2050 to transform its energy grid. All in all, the mood was risk-on—a stark contrast to yesterday, with heavy buying into tech and selling in defensive sectors such as staples and utilities.
For perspective, consider this week’s wild, fast, and furious shake-up was wake-up call. Expect this year to be very volatile, but that brings opportunity—for the brave. Watch the VIX.$CBOE Volatility S&P 500 Index (.VIX.US)$The market’s fear index spiked to its highest level this year yesterday, rising to 22.51. But now it’s calmed back to its average range of 16.41. So for now this suggests that risk on mood could pick up and boost tech and AI and uranium companies that were down beaten the day before.
Also watch Nasdaq 100 ETFs including NDQ$BetaShares NASDAQ 100 ETF (NDQ.AU)$the ASX. If Australian inflation today, and commentary from the Fed tonight suggests inflation may be coming expect next trend is a ladder up for stocks. So let’s hope we see more ladders up for markets and stocks than snakes, this Chinese New Year.
Buy n Die Together❤ :
lallysa Buy n Die Together❤ : $Bitcoin (BTC.CC)$
勇敢M00M00_不怕翻车 :