What It Means When Nvidia’s Profits Soar +80% and the Share Price Nose-Dives

With expensive equity valuations, in-line earnings results are not enough to keep the rally going

Highlights

• With expensive equity valuations, in-line earnings results are not enough to keep the rally going

• Yesterday’s market volatility was rare and has been seen only 0.3% of the time historically

• The latest consumer confidence surveys have turned down rather dramatically

• If tariffs go through, cash, bonds and gold would be the only places to hide

Key Takeaways

• Nasdaq's Technical Struggles: The Nasdaq closed yesterday with a -2.8% loss and is just +1% above its 200-day moving average — now at its lowest level since early November. The equal-weight semiconductor index (ESOX) just undercut its lows from the mid-summer correction of last year — now down by -27% from the highs, and to the lowest point since January 2024.