Strongest reversal since April: stock indices collapsed after morning rally

All three key U.S. stock indexes showed the strongest reversal in a single trading session since April 8, CNBC notes. At the height of the morning rally on November 20, they added more than 1.5%, but closed in a significant downside. Nvidia's strong quarterly report, which supported markets early in the session, wasn't enough to keep the momentum going as investors still fear the AI sector's overvalued stocks. And employment statistics published on Thursday dampened hopes that the U.S. Federal Reserve will cut rates again in December.

- The Nasdaq Composite Technology Sector Index fell 2.2% on Nov. 20 - after climbing 2.6% in early trading.

- The S&P 500 broad market index lost 1.56%, despite an earlier gain of 1.9%.

- The blue-chip index Dow Jones Industrial Average fell 0.9%.

All three indices soared at the opening of trading thanks to Nvidia's strong quarterly results released the day before. The chipmaker's shares jumped by 5% at the moment, while other AI-related stocks also rose in price. But in the afternoon, Nvidia's quotes fell and eventually ended trading down by 3.2%, pulling the rest of the technology sector with it.

- The VIX volatility indicator, known as the Wall Street Fear Index, rose 10% on the day, passing 26 points. A value above 20 points indicates anxiety among investors.

- Bitcoin's price has fallen below $86,600, its lowest level since April 20, according to Coinmarketcap. The token has lost more than 31% from its September peak.

This article was AI-translated and verified by a human editor