Nasdaq-100 rallies to best day since May, defying Nvidia’s decline

Notably, this rally occurred despite a downturn in NVIDIA (NASDAQ:NVDA), which fell by 4.27%, or $7.97, to $178.67 – its lowest closing price since April 7 and the worst performance among the 101 index members.

This divergence is significant because NVIDIA holds a substantial 7.1% weighting within the index, second only to Apple (NASDAQ:AAPL) at approximately 8.5%. Analysts estimate Nvidia’s decline would typically subtract around 0.3 percentage points from the index’s overall performance. However, the Nasdaq-100 still achieved a strong gain, fueled by advances from 86 of its members compared to only 15 declines.

The broader semiconductor sector also contributed to the positive momentum, with the Philadelphia Semiconductor Index rising 6.85% to 10,033.93 after a decline of over 12% in the week leading up to November 6. While NVIDIA was the sole stock within that index to experience a loss, Monolithic Power Systems (NASDAQ:MPWR) jumped 16.6%, Applied Materials (NASDAQ:AMAT) increased by 11.37%, and Apple added 2.43%.

Crude oil prices also eased, with Brent crude falling 5.85% to $92.57, potentially alleviating inflation concerns. This decline was further amplified by short covering and value buying activity among traders.

Adding to the day’s developments, Nvidia’s board initiated an independent investigation into national security concerns surrounding CEO Jensen Huang. Huang disclosed the review in a memo to employees on November 8 and affirmed his full cooperation. The board maintains that there is no indication of compromised national security or company secrets. This investigation is the only formal record available thus far, with no press releases or updates filed beyond the August 26 earnings report.

Despite the investigation, Nvidia’s business outlook remains unchanged, with a forecasted revenue of $108.0 billion, plus or minus 2%, and a market value of approximately $4.31 trillion.

The Nasdaq-100 remains in a correction, currently trading 10.62% below its record close of 31,224.47 on October 6 and 1.86% below its November 4 close of 28,437.17. The Nasdaq Composite, however, has exited correction territory, rising 2.74% to 25,253.14 and now sitting 8.50% below its record. The Nasdaq-100 remains up 10.53% for the year 2026.

The future performance of QQQ hinges on several factors, including the outcome of the Nvidia investigation and upcoming economic data. The release of October’s Consumer Price Index (CPI) on November 10 is anticipated to reveal headline inflation of 0.3% and core inflation of 0.2%. Applied Materials and Nvidia are also scheduled to report on November 12 and November 17, respectively.

A Nasdaq-100 close above 28,437.17 following Nvidia’s report would signal a confirmed rebound, while a close below 26,989.99 would suggest that the November 9 gain was merely a temporary reprieve.