Nvidia's recent downgrade by Punto Casa de Bolsa to a "Sell" rating has stirred the market, as concerns over the company's valuation and potential industry headwinds come to the forefront. The downgrade has led to a significant uptick in trading volume, with shares trading at over 166% of their average daily volume. Despite closing the day with a 0.77% increase, Nvidia's stock has seen a decline in after-hours trading, reflecting investor apprehension about the sustainability of its current market price. This bearish sentiment is likely influencing the performance of related financial instruments.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF, designed to inversely track Nvidia's performance, saw a slight increase of 0.30% to $6.70 as of 5:20 PM on Thursday, January 30.