EBC Markets Briefing | Wild swing ahead for US equities

The Nasdaq 100 fell more than 1% on Monday, with big technology stocks creating the biggest drag as investors waited for results from Nvidia.

Even a little wobble in confidence about the superiority in US tech giants can go a long way. Having a market cap of over $3 trillion, Nvidia is the largest holding in the index outside of Apple.

As of last Friday, options traders were pricing in a 7.7% move in Nvidia shares following its earnings, compared with an average gain or drop of 9.2% after the last eight quarterly reports.

US stocks have underperformed most its major peers in 2025, as opposed to expectations that Trump’s policies help maintain local market’s dominance. The rational is in part valuation gap.

Hedge funds exited US tech stocks in the two weeks to February 21 at the fastest pace in six months, according to Goldman Sachs. Meanwhile, they bought Asia stocks at the fastest pace in five months.

Citigroup said positioning has flipped so “dramatically” in favour of Europe. The outlook for lower interest rates, resilient corporate earnings and a potential ceasefire in Ukraine all fuelled the enthusiasm.

The Nasdaq 100 has weakened below 50 SMA and the short-term direction will hinge on Nvidias’ earnings report. Thus trade with the trend after it will be appropriate.

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