Investors have been closely monitoring Nvidia’s stock (NVDA), which weakened in the pre-market today following a significant intraday reversal on Friday. This unexpected turn of events has grabbed the attention of many market participants.

As we enter a week filled with crucial macro data releases and earnings announcements that tend to be on the slower side in terms of growth, the performance of Nvidia is likely to become the key driving force behind the broader market’s movements.

Experts point out a few notable observations from market analysis:

“At one point on Friday, Nvidia, the third largest company globally, experienced an impressive 92% year-to-date increase. The S&P 500 semiconductor index’s return over the past five months reached 84%, the highest since 1999. However, it has been anticipated for some time that the AI (Artificial Intelligence) trade would enter a consolidation period, and Friday’s key reversal day could mark the beginning of that adjustment.”

“In the last 2,000 years, it is a rarity to see a stock lose $250 billion in value in just three hours. This unfortunate incident hit Nvidia on Friday, transforming the stock’s initial gain of 5% to a significant decline of 6.5% intraday, ultimately closing at a loss of 5.55%. Furthermore, after-hours trading continued to negatively impact the stock, with an additional decline of almost 3%. Remarkably, Nvidia still managed to achieve a gain of 6.38% in a single week and 21.3% in March thus far. Moreover, it maintained a streak of ten consecutive weeks of gains in its stock price. However, this late week sell-off resulted in a 0.65% drop for the S&P 500 on Friday and a 0.26% overall decline for the week, just missing out on posting gains for 17 out of the past 19 weeks. This failure to increment for the week’s majority happens for the first time since 1964.”