NEW YORK – Tech giant NVIDIA (NASDAQ: NVDA) capped a rollercoaster trading session on Thursday with a powerful finish, signaling strong investor confidence and setting a bullish tone for the start of next week’s trading.
Shares of the chipmaker closed at
2.66 (1.72%) for the day. The performance is particularly noteworthy given the significant intraday swings. The stock touched its 52-week high of $158.71 during the morning rally before facing a steep sell-off in the afternoon. However, buyers returned in force during the final hour, erasing the losses and driving the stock to a strong close.
After-hours trading showed a minor pullback to $157.59, a negligible dip that does little to dampen the day’s positive outcome.
What This Means for Monday’s Market
NVIDIA’s performance is often seen as a barometer for the entire tech sector and, by extension, the broader market. The stock’s ability to rebound so convincingly provides key clues for Monday.
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The Bullish Case (Market Up): The primary takeaway from Thursday’s chart is resilience. The sharp “V-shaped” recovery from the afternoon low of $155.26 demonstrates that investors are eager to buy on any sign of weakness. This aggressive buying pressure into the close, especially after testing a 52-week high, is a powerful sign of underlying market strength. This momentum from a market leader like NVIDIA is very likely to spill over, suggesting the market will open higher on Monday as confidence carries through the weekend.
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The Bearish Case (Market Down): While the finish was strong, the midday slump shouldn’t be entirely dismissed. It shows that there is profit-taking pressure at these elevated levels. The 52-week high acted as a point of resistance, and sellers may re-emerge to test that level again. If any negative macroeconomic news or sector-specific concerns arise before Monday’s open, it could give bears the upper hand and lead to a flat or slightly lower open as the market consolidates its recent gains.
The evidence overwhelmingly points towards continued positive sentiment. The ability of a major market driver like NVIDIA to not only gain but to do so by fighting back from a significant intraday drop is a classic bullish indicator. While some caution is warranted given the stock is trading near its peak, the momentum firmly favors the bulls. Expect the market to carry this positive energy into Monday, likely resulting in a higher open.
Disclaimer: This article is for informational purposes only and is not financial advice. Stock market performance is subject to volatility and past performance is not an indicator of future results.
