Nvidia’s options are primed for an 8.7% swing in either direction by Friday, according to data from options analytics firm Trade Alert. That would translate to a market cap swing of $200 billion – larger than the market capitalization for about 90% of S&P 500 companies.
While massive by most measures, that implied move would fall far short of the 16.4% jump Nvidia’s shares notched after the company’s most recent quarterly earnings report.
Commodities too have been pumped up of late, mostly in metals where a mix of China’s latest property market rescue plans and considerable speculative activity sent copper and gold to new records on Monday.
But even these have calmed down a bit today, with both stepping back from new milestones overnight.
Oil prices too fell back from Monday’s three-week highs – helping take some of the heat out of Treasury yields.
Asian and European bourses slipped back earlier. Hong Kong’s Hang Seng was the big underperformer with losses of more than 2% as doubts linger about the effectiveness of China’s latest attempts to backstop its housing bust and geopolitical rhetoric around Taiwan appearing to have risen several notches in recent days.
G7 finance ministers, meantime, head to Italy this week for a meeting in Stresa on Thursday.
U.S. Treasury Secretary Janet Yellen is pushing for them to agree on a plan to use the income stream from some $300 billion worth of frozen Russian sovereign assets to back a larger loan to Ukraine.
Proponents of the plan say this could provide up to $50 billion up front for Ukraine, without confiscating the assets, as opposed to just using about $3.5 billion a year in interest earnings.
Speaking in Frankfurt on Tuesday, Yellen also said the United States and Europe need to respond to China’s industrial policies in a “strategic and united way” to keep manufacturers viable on both sides of the Atlantic.
