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Tech Tumbles: Market Reverses Despite Nvidia's Report
21 Nov
Summary
- Tech stocks experienced a sharp midday reversal, closing at day's lows.
- Bitcoin's drop below $90,000 coincided with the stock market's decline.
- The US Dollar Index reached a three-month high, potentially signaling a trend.
The market witnessed an abrupt midday reversal, with the tech sector, tracked by the XLK, closing at its lows after opening significantly higher. This unexpected downturn occurred despite a blockbuster earnings report from Nvidia, failing to sustain an earlier rally. The Nasdaq 100 showed a rare, concerning pattern, moving from a 2% gain to a more than 2% loss, a signal not typically seen in less volatile markets.
This risk-off sentiment extended to other assets, with Bitcoin breaking below $90,000 around 11:00 a.m., a move that seemed to correlate with the stock market's sharp decline. The US Dollar Index also reached a three-month high, which could signal a larger upside move and potentially weigh on equities. Meanwhile, the VIX, a key measure of market volatility, traded at its highest level since October, trending upwards over the past two months.
