Nvidia Volatility Shakes AI Stocks: Nasdaq and S&P 500 Futures Fall

The S&P 500 gained 2.9% over the past 24 hours, showing strong momentum, with its RSI at 61 approaching overbought territory. However, volatility in AI-related stocks driven by Nvidia and declines in futures are increasing the risk of short-term profit-taking. Although MACD remains positive above its signal line, the news flow could weigh on risk appetite. Since the index is above its SMA20 and SMA50, the medium-term trend has not deteriorated; therefore, any pullback may be limited and volatile. Confidence should be kept at a moderate level.

NVDA fell more than 7% in 24 hours, retreating to near its 20-day simple moving average (SMA20) and trading well below its 50-day SMA (SMA50), indicating a weak short-term trend. The RSI at 41 remains far from oversold territory, and while the MACD is negative but above its signal line, momentum is still downward. News headlines point to volatility in AI stocks and declines in futures, which could increase short-term selling pressure on NVDA. However, the price holding near SMA20 and the MACD being above its signal line also keep alive the possibility of a limited rebound. Therefore, a slightly bearish outlook with low-to-medium confidence is appropriate for the next 1-3 days.

The volatility stemming from Nvidia is weakening risk appetite in AI-themed stocks; GOOGL, being sensitive to the AI narrative, may also come under short-term pressure. On the technical side, the price is above the SMA20 and SMA50, the RSI at 59 is not in overbought territory, and the MACD is above its signal line; this points to a limited pullback rather than a sharp decline. After a 2.7% rise in 24 hours, the risk of profit-taking has increased. The decline in futures may create a negative tone at the open, but the trend has not yet deteriorated. Therefore, I maintain a downward bias with moderate confidence.

The NDX has posted a strong gain of about 4.8% over the past 24 hours, with its RSI at 61 approaching overbought territory; this raises the risk of short-term profit-taking. Although MACD remains positive above its signal line, momentum appears to be near its peak. Volatility stemming from Nvidia and declines in futures may temporarily weaken risk appetite for AI-themed stocks. Since the price remains above the SMA20 and SMA50, the medium-term trend has not been broken; therefore, downside expectations are limited and of low confidence. A mild downward correction or sideways movement is more likely within 1-3 days.