Goldman Sachs partner John Flood said that the sharp reversal in US stocks on Thursday highlighted that Nvidia's impressive earnings report did not “lift the alert” in terms of risk as traders expected, but instead prompted them to seek safe haven to prevent further losses. The US stock market opened sharply higher, but quickly reversed. The S&P 500 index rose 1.9% in the first hour of trading, then fell 1.1% before 1 p.m. — the biggest intraday fluctuation since the April market turmoil — the market value evaporated more than $2 trillion from the day's peak, closing below the 100-day moving average for the first time in months. The VIX Index jumped above 26. Despite Nvidia's impressive earnings report, the stock market fell sharply, leaving traders disappointed and rushing to find the reason. Various claims continued to rise, including questions about whether the Federal Reserve could cut interest rates after the release of mixed employment reports, and concerns that excessive valuations and technical factors may cause them to continue to sell. “The market is currently scarred,” Flood wrote in a report to customers. “Investors pay too much attention to hedging the risk of market congestion and are completely in a profit and loss protection model.”

Goldman Sachs partner John Flood said that the sharp reversal in US stocks on Thursday highlighted that Nvidia's impressive earnings report did not “lift the alert” in terms of risk as traders expected, but instead prompted them to seek safe haven to prevent further losses. The US stock market opened sharply higher, but quickly reversed. The S&P 500 index rose 1.9% in the first hour of trading, then fell 1.1% before 1 p.m. — the biggest intraday fluctuation since the April market turmoil — the market value evaporated more than $2 trillion from the day's peak, closing below the 100-day moving average for the first time in months. The VIX Index jumped above 26. Despite Nvidia's impressive earnings report, the stock market fell sharply, leaving traders disappointed and rushing to find the reason. Various claims continued to rise, including questions about whether the Federal Reserve could cut interest rates after the release of mixed employment reports, and concerns that excessive valuations and technical factors may cause them to continue to sell. “The market is currently scarred,” Flood wrote in a report to customers. “Investors pay too much attention to hedging the risk of market congestion and are completely in a profit and loss protection model.”