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US Market Pancakes As Nvidia Gamma Squeeze Fizzles, Attention Turns To Jobs, Global Easing Cycle
After yesterday's breathless Nvidia-led meltup, which saw the AI chipmaker surpass both $3 trillion in market cap and Apple's valuation, today's session was a boring affair by comparison, which saw the S&P close unchanged after a day in which the index barely moved. chart There were three reasons behind the lack of action. First, technicals. As Goldman's Brian Garrett notes, ES 5350 is the "magnetized" strike, with $9.5 billion of gamma - a record amount - to trade per 100bps; This means that dealers have to sell 35,000 eminis on a 1% rally, and buy 35,000 eminis on a 1% sell off. Said otherwise, the record dealer ... (full story)