NVDA has a $4.4 trillion market capitalization and is about 8.2% of the S & P 500. These amounts are unprecedented on both the absolute and percentage basis. Some have stated that NVDA is the most important stock in the world given its potential outsized influence that a surprise can have upon the global indices.
Late yesterday, the options market has priced in a 6% move in either direction after the release of its earnings.
NVDA has added about $2 trillion in market value since April, an amount that is almost equivalent to the entire capitalization of the London stock market. Writing it differently NVDA has increased in value since April by almost the entire value of AMZN, the sixth largest company in the S & P 500. There are only six companies worth more than $2 trillion in this key benchmark.
Wow!
After the close NVDA posted results that exceeded expectations but not by the degree the market had discounted. Depending upon the moment, shares are down anywhere between 3% and 4%. Or about $200 million dollars, a decline in value that is worth more than Texas Insturment, Uber, or PepsiCo or about 450 members of the S & P 500.
Commenting about the Treasury market, the two-year Treasury continued to rally on hopes of a more accommodative Fed. The 30-year Treasury ended nominally higher in yield however its yield is still around the levels of the beginning of the year.
The considerable steepening in the yield curve during the year is almost entirely the result of a declining yields for the two-year Treasury, the instrument that is most sensitive to potential changes in monetary policy.
Last night the foreign markets were down. London was down 0.46%, Paris down 0.05% and Frankfurt down 0.25%. China was up 1.14%, Japan up 0.73% and Hang Seng down 0.81%.
Futures are “soft.” The 10-year is up 1/32 to yield 4.25%.
