The Nasdaq plunged 5.52% yesterday, and Nvidia fell another 9%, officially entering a technical bear market after retreating 24% from its peak. But this morning, U.S. stock futures turned green in overnight trading, with Nasdaq futures up 1%. Memory chipmakers like Micron and SanDisk were among the first to bounce back. Over in Asia, investors are still cutting their losses: the ChiNext opened sharply lower. The same batch of AI stocks is trading at two different prices across two time zones—it’s pretty surreal.
Is this a rebound or just a dead-cat bounce? The trading volume in the first half hour after tonight’s open will tell us. Yesterday’s sell-off showed too many signs of leveraged positions being forcibly liquidated. If there’s going to be a recovery, it probably won’t happen in just one day, right?
Is this a rebound or just a dead-cat bounce? The trading volume in the first half hour after tonight’s open will tell us. Yesterday’s sell-off showed too many signs of leveraged positions being forcibly liquidated. If there’s going to be a recovery, it probably won’t happen in just one day, right?