NVDA
The current stock price of NVDA is $140, while Visa's stock price, a component of the Dow Jones Industrial Average (DIA), is $290, which happens to be nearly double that of NVDA. Visa's weight in the DIA is 4.5%, corresponding to NVDA's weight of less than 2.25%, which we will round to 2.25%. With DIA's scale only at $35.2 billion, equivalent to around $0.88 billion in passive bids, considering related ETFs based on the Dow Jones, the overall passive bids may not exceed $1.2 billion.
What impact can a $1.2 billion bid have on NVDA? I think it will have almost no impact at all. NVDA's trading volume after hours is $2.37 billion, likely enough to be bought in one go. Therefore, this move into the Dow Jones is just a trick that Wall Street is using to support the market before the election, especially since NVDA's daily trading volume is in the tens of billions – $1.2 billion is really just a drop in the bucket.
Entering the Dow Jones may actually have a negative impact on individual stocks. During NVDA's blind surge, market liquidity may be drained by NVDA alone. We might see a situation where 'individual stocks plummet, indices remain flat, and NVDA skyrockets,' a scenario we have seen many times before, which I believe is not unfamiliar to many.
NVDA may be able to support the index in the short term, but ultimately, the market trend is still determined by the election!
What impact can a $1.2 billion bid have on NVDA? I think it will have almost no impact at all. NVDA's trading volume after hours is $2.37 billion, likely enough to be bought in one go. Therefore, this move into the Dow Jones is just a trick that Wall Street is using to support the market before the election, especially since NVDA's daily trading volume is in the tens of billions – $1.2 billion is really just a drop in the bucket.
Entering the Dow Jones may actually have a negative impact on individual stocks. During NVDA's blind surge, market liquidity may be drained by NVDA alone. We might see a situation where 'individual stocks plummet, indices remain flat, and NVDA skyrockets,' a scenario we have seen many times before, which I believe is not unfamiliar to many.
NVDA may be able to support the index in the short term, but ultimately, the market trend is still determined by the election!
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readme1221 : As long as NVDA goes up, it's fine, who cares about the large cap.
Asianl OP readme1221 : It's skyrocketing.