NVIDIA Corporation's stock faced a turbulent trading session, influenced by broader market trends and specific company developments. The Federal Reserve's recent rate cut announcement 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 couldn't sustain its gains. Additionally, competition concerns arose with AMD's new AI chip patent, potentially challenging NVIDIA's market position.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) responded to these dynamics, rising 1.94% to $31.05 as of 16:40 on Wednesday, December 18.