On October 2, the American stock market updated its highs. First, Nvidia shares set a new all-time high, and a few minutes later, the Nasdaq 100 also rose above its previous high. Both moves occurred shortly after the opening of the main U.S. trading session.
Timeline of the day
16:45 MSK - Nvidia shares, ticker NVDA, updated their all-time high. 17:10 MSK - the Nasdaq 100, NDX index set a new record. The main U.S. trading session opens at 16:30 MSK, so both highs were recorded almost immediately after the start of trading.
Why the Nasdaq 100 and Nvidia move together
Nvidia is one of the largest companies in the Nasdaq 100 and has a large weight in the index. Therefore, a strong move in NVDA directly affects the performance of NDX. When Nvidia shares update their high, this creates additional support for the entire Nasdaq 100 as well. In this case, the two records, about 25 minutes apart, effectively became part of a single market movement.
What an all-time high means
An all-time high is a level above which the instrument has never traded before. In such a zone, there are no previous price highs on the chart that could be used as familiar resistance levels. Because of this, the movement can accelerate, but at the same time the likelihood of sharp intraday pullbacks increases.
What is in focus
The main instruments remain:
- Nasdaq 100
- S&P 500
- Nvidia
As long as the technology sector and the largest companies hold near record levels, they may create the bulk of the movement at the opening of the U.S. session. Particular attention remains on whether the market can consolidate above previous highs or whether profit-taking will begin after the records are updated.
Were you watching this record from the sidelines?
All-time highs in indices and major stocks often produce strong intraday movements. But the result of a trade depends not only on the direction of the market, but also on the size of the available trading capital. Prop trading allows you to pass a challenge and gain access to a company account without needing to use comparable personal capital. Records on indices can come in series, so it is better to understand the mechanics of prop trading before the next strong movement.