Nvidia Almost 10% Down, Pulling Nasdaq Lower on Risk Aversion

Poor September seasonals have arrived, putting significant pressure on risk assets, with Nvidia stock nearly 10% lower. Historically, September is a challenging month for the stock market, oil prices, and gold, and today all three are down, with some experiencing substantial losses. Investors faced broad-based movements across various sectors, with the tech sector, especially semiconductors, under significant negative pressure.

Nasdaq Chart Daily – Will the 100 SMA Hold?

The semiconductor industry was notably in the red, experiencing significant declines. Nvidia (NVDA) led the slump, initially dropping 3% and accelerating throughout the day, while Advanced Micro Devices (AMD) and Qualcomm (QCOM) also fell, pushing the Nasdaq down nearly 3% by the close. Nvidia’s sharp decline is particularly concerning, with shares closing over 10% lower, with the way open until the $90 mark where we find the 200 daily SMA.

Nvidia Chart Daily – The 100 SMA Is Broken

The company’s shares plunged nearly 9.6% today amid growing investor concerns about stalling advances in AI. Although Nvidia’s shares remained stable following their earnings report last week, today saw another round of profit-taking which picked up pace into a massive sell-off. This resulted in nearly $380 billion drop in market value, marking the worst-ever day market value wipeout for a company. The broader market is signaling challenges for global growth. With the FOMC meeting this month, there is anticipation that the Fed will cut rates either by 25 or 50 basis points, leading to potential volatility until then.

Nasdaq Index Live Chart