Nvidia’s sharp selloff raises fears and questions [Video]

The week kicks off on a weak note following a moody trading session across Europe and the US on Friday. One of the most significant moves of last two trading days of the US was a 10% selloff in Nvidia sales for … no reason other than the fact that it was the end of the month, the end of the quarter and the end of H1. And the problem with that is, because the US Big Tech stocks led by Nvidia were responsible for most of this year’s rally in major US indices, any weakness could derail the rally.

This week, the US will reveal its latest GDP update on Thursday and core PCE data on Friday. The latter better be soft enough to prevent a broader selloff in US indices. On the individual front, FedEx and Micron Technology are due to release earnings.

Elsewhere, appetite is limited. The Stoxx 600 in Europe was toppish last week as the French political uncertainties occupied the headlines. The EURUSD is under pressure. In Japan, the USDJPY is dangerously flirting with the 160 level – a level which had brought the Japanese policymakers to intervene to stop the bleeding back in April.

In energy, US crude is lower this Monday morning after having tested and failed to clear the $82pb resistance last Friday.

Chinese equities begin the week on continued downside pressure, while Indian assets will likely benefit from the Indian government bonds’ inclusion to a JP Morgan global bond index.