NVIDIA Corporation's stock faced a turbulent trading session, influenced by broader market trends and specific industry developments. The Federal Reserve's announcement of a rate cut led to a selloff in large-cap technology stocks, including NVIDIA, as investors reacted to the Fed's decision to slow the pace of future rate reductions. Despite positive developments such as Microsoft's significant purchase of NVIDIA's AI chips and the launch of the Jetson Orin Nano Super Developer Kit, the stock was unable to sustain its gains. Additionally, competition concerns arose with AMD's new AI chip patent, potentially challenging NVIDIA's market position in the AI GPU sector. These factors collectively contributed to the stock's decline.
The ETF Opportunities Trust T-Rex 2X Inverse NVIDIA Daily Target ETF (NVDQ) responded to these market dynamics, rising 2.40% to $3.84 as of 16:40 on Wednesday, December 18.