Quick Take
According to Michael Brown, senior research strategist at Pepperstone FX, NVIDIA shares fell 9.5% yesterday, shedding about $253 billion in market cap, the largest one-day market cap drop ever for an SPX stock. The drop is roughly the same as the $287 billion market cap of Ethereum, the 38th largest asset in the world by market cap. Despite reporting strong earnings, NVIDIA is currently more than 20% below its all-time high.
Bitcoin continues to fall but is stabilizing at just above $1 trillion in market cap. To get back to a trillion-dollar valuation, Bitcoin's price would need to reach around $51,000.
Global markets also saw a sell-off, with Japan's Nikkei Stock Average falling about 4% and crude oil prices dropping 5%. The turmoil has increased market uncertainty, especially with the Federal Reserve's next meeting looming on September 18. Market sentiment is currently split, with a 60-40 chance of favoring a 25 basis point rate cut, according to CME's Fed Watch tool. Investors are closely watching the Fed's next move, which could have a major impact on both the stock and crypto markets going forward.
