Nvidia's Rally Lifts S&P 500, But Volatility Warning Issued

Nvidia's impressive rally yesterday lifted the S&P 500 index, with nearly all of its gains on the day attributed to the tech giant. The equal-weight S&P 500 ETF finished lower by 30 basis points, versus a 72 basis point gain for the S&P 500.

The $220 call gamma level was breached, but Nvidia's shares were unable to push above the $230 call wall, which held as resistance. This suggests that a failure to break through this barrier could result in the shares giving back yesterday's gains over time.

With Nvidia's results now behind us, implied volatility has melted lower across single-stock and options markets. This is significant because it means the dispersion trade is winding down, with only Broadcom remaining as a major contributor.