Nvidia Leads U.S. Stock Indices Down as Futures Expire

Nvidia Leads U.S. Stock Indices Down as Futures Expire: The U.S. financial markets have experienced sharp fluctuations recently, and the expiration of futures contracts has affected stock indices.
In this context, Nvidia was at the heart of the events, sparking a wave of market activity and volatility.

 

Content

Nvidia Leads U.S. Stock Indices Down

The Triple Witching Effect on Trading Volumes

Nvidia’s Role in Market Volatility

The Impact of Rebalancing on the Technology Sector

Record Investments in Technology Stocks

Expected Volatility in the Second Half of 2024

Performance of Major Indices

 

 

 

Nvidia Leads U.S. Stock Indices Down

The expiration of futures contracts has led to significant losses for Nvidia, the artificial intelligence chip manufacturer.

It lost more than $200 billion in market value in two days.
This resulted in a drop in U.S. stock indices, with trading volumes increasing significantly.

 

The Triple Witching Effect on Trading Volumes

The U.S. stock exchanges saw a substantial increase in trading volumes during the “triple witching” period,
with volumes rising 55% above the three-month average.
Approximately 18 billion shares were traded on U.S. exchanges on Friday, a significant increase from the average.

 

Nvidia’s Role in Market Volatility

Nvidia played a major role in these fluctuations, with the value of contracts linked
to the chipmaker being the second largest of any underlying asset,
trailing only the S&P 500 Index.
The expiration coincided with the periodic review of the index by S&P Dow Jones Indices.

 

The Impact of Rebalancing on the Technology Sector

Analysts believe that the major rebalancing was set to occur in the Technology Select Sector Index,
leading to a significant increase in Nvidia’s relative weight at the expense of Apple.
This caused concern among traders about large moves late in the day.

 

 

 

Record Investments in Technology Stocks

Technology funds received record investments of about $8.7 billion in the week ending June 19,
reflecting the ongoing AI craze.
However, investors are concerned about the risks of stock concentration.

 

Expected Volatility in the Second Half of 2024

Analysts anticipate significant market volatility in the second half of 2024,
and investors’ decisions now to navigate this period effectively will be crucial.
History shows that stock prices do not rise in a straight line, requiring wise diversification, patience, and discipline from investors.

 

Performance of Major Indices

The S&P 500 Index fell by 0.2% at 4 PM New York time.

The Nasdaq 100 Index dropped by 0.3%.

Bitcoin’s price fell by 1.2% to $64,301.01.

The spot price of gold declined by 1.6% to $2,322.32 per ounce.

 

Nvidia Leads U.S. Stock Indices Down as Futures Expire