Nvidia's stock price has soared nearly 17% in the past four trading days, adding more than $400 billion in market value. The rebound also pushed the broader market higher. In these four days, Nvidia contributed about 22% of the S&P 500's gains.
Ivana Delevska, founder and chief investment officer of Spear Invest, said: "Nvidia has brought a lot of good news in this earnings season, but the impact of carry trades is too great, and the good news is not important at all. Now that technical pressure has eased, the market has returned to fundamentals, which is why the stock price has soared."
Nvidia's stock price rebound also caught option traders who bet on its further decline off guard. Institutional data shows that the cost of protecting the stock from a 10% decline in the next 60 days is close to the highest level since May 2023, relative to contracts that profit from a 10% increase. (Jinshi)