Two words - F**king NVDA - sum up today as the AI giant accelerated on the back of a gamma-squeeze...
Source: SpotGamma
...which created these gains...
And now we are up 4500% in one day.
— zerohedge (@zerohedge) May 28, 2024
Hey @garygensler, maybe once you emerge from under Senator Karen's skirt, you can pretend to do your job. https://t.co/fuYk6xWcZx pic.twitter.com/XdNHKutx8l
...to within $100 Billion of AAPL's market cap...
Source: Bloomberg
...that is an addition of almost $500 billion since earnings last week.
And as NVDA soared...
Source: Bloomberg
...the major indices tumbled from Friday's cash market close. The Dow is the biggest loser, followed by Small Caps. Nasdaq tried desperately to hold on to a green close while the S&P faded. The ubiquitous last minute ramp made things look a little better on the day...
NOTE - yesterday - while cash markets were closed, the algos seemed to forget and panic-bid futs into the early close.
“What I think this sets up for in the medium- to long-term is a price-action that looks more like either a grinding move higher but also one too where we have actual conditions to crash-down,” says Nomura’s Charlie McElligott. He notes that investors’ long exposure has been rebuild to such a degree that it’s creating actual downside hedge demand.
With US elections also entering their hot phase soon, it’s worth noting that VIX futures are already reacting with some sensitivity and rather early to this topic.
NVDA was not the only thing rising today though - oil prices surged back above $80 (WTI), Gold jumped back above $2360, Bitcoin spiked back above $70,500 overnight (before fading on Mt.Gox moves), the dollar ripped higher, and US Treasury yields soared after two auctions and some stronger than expected macro data (home prices at record highs and conference board confidence, and inflation expectations, rising).
We do note two things - Dallas Fed Manufacturing tumbled today more than expected and while the headline confidence data picked up at The Conference Board, the lowest income cohort saw confidence plunged to pandemic lows...
Source: Bloomberg
Treasury yields were up across the board with the long-end underperforming. Selling was pretty constant from the US cash equity open...
Source: Bloomberg
That steepened the yield curve significantly...
Source: Bloomberg
Interestingly (given the steepening and short-end outperformance), rate-cut expectations (hawkishly) fell significantly on the day...
Source: Bloomberg
The dollar followed yields higher...
Source: Bloomberg
Gold managed to hold gains despite the dollar strength...
Source: Bloomberg
After 10 straight days of net ETF inflows, Bitcoin extended gains overnight, back above $70,000. However, moves in Mt.Gox-related wallets prompted selling in anticipation of selling pressure to come...
Source: Bloomberg
Oil prices soared back above $80 (WTI)...
Source: Bloomberg
Finally, this is probably nothing...
Source: Bloomberg
...because it's different this time.
