It Takes Just One Day to Bring the S&P Back to Life

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On July 25th, the ES reached a low of 5433.25 and then retested this low on Tuesday at 5432.50. After Microsoft reported earnings, it fell 50 points to a new low of 5432.25, then rallied to 5588.50 yesterday, marking a gain of 156.25 points in 21 hours.

For its part, the Nasdaq hit a low of 18,883.25 on July 30, rallied to a high of 19,390.50, and then sold off to a new low of 18,725 on Tuesday at 3:30. It then rallied to 19,657.75 yesterday, resulting in a 932.75-point rally in less than 24 hours.

Like I mentioned on my Twitter live stream, we haven’t seen this level of intra-day swings since March 2020, when the COVID-19 pandemic began. 

After an 10.7% drop in the Nasdaq (NQ) and Nvidia falling 25% over the last 15 trading days, the chipmaker experienced its single-largest gain in market cap ever. At the start of the Great Rotation on July 10, NVDA traded above $134.91 before dropping to $102.65 on July 30 at ~1:00, a total loss of $32.26 or just over 25% over 15 sessions, wiping out nearly $800 billion in market cap in that span. 

Yesterday, NVDA gained 13% and added $329 billion in market cap in a single day — a record — with an additional 4% gain in the after-market up to $121.49. This was a rise of $18.84 on the day, just $13.52 off its high.