Nvidia Surges in Eight-Day Rally, Sees De-rating on Emerging Market Rotation
Since March 30 lows, Nvidia rallied alongside Amazon, Alphabet and Meta, helping the Magnificent Seven ETF post its best eight-day gain since May. Meanwhile, geopolitical tensions have spurred a rotation into emerging markets, triggering de-ratings in AI-linked names such as Nvidia, warns strategist Jay Pelosky.
1. Rally Splits Magnificent Seven
The Nasdaq Composite notched an eight-day winning streak, propelling the Roundhill Magnificent Seven ETF to its strongest eight-day gain since last May. Within the group, Amazon, Nvidia, Alphabet and Meta surged off the March 30 lows, while Tesla, Microsoft and Apple lagged.
2. Nvidia’s Outperformance
Nvidia joined Amazon and Alphabet in the rebound from the late-March trough, contributing materially to the sector-wide rally even as Meta remains below pre-war levels and Tesla trails 13% lower across both selloff and recovery phases.
3. Emerging Market Rotation and De-ratings
Strategist Jay Pelosky highlights a shift of capital out of U.S. equities toward emerging markets driven by geopolitical strains. This reallocation has led to de-ratings in AI-linked stocks like Nvidia as investors seek opportunities outside the U.S.