Here’s Everything You Missed This Week…
Lights on at the AI Party? Dear Reader, After weeks of smooth sailing and record highs, Wall Street finally hit the panic button. Monday's selloff went well beyond your garden-variety dip. This was full-blown risk reduction, with some of the market's darlings getting absolutely throttled: - Palantir (PLTR) collapsed more than 20% in four days after Pentagon budget cut fears surfaced.
- Cathie Wood's ARKK got hammered, dropping 6% in a single session as growth stocks lost their footing.
- Even Meta (META), one of the year's strongest performers, reversed hard.
But let's be honest — this week belonged to Nvidia. For weeks, the market had been holding its breath for NVDA's earnings, desperate to see if the AI-fueled rally had any juice left. Investors had set the bar impossibly high, banking on another blowout quarter to keep the party going. And Nvidia delivered the numbers. But the stock still tanked. Now everyone's asking: if Nvidia can't hold up, what the hell can? Monday's Selloff: High-Flyers Get Their Teeth Kicked In | | | The market came into this week already looking wobbly. Momentum had been running red-hot, and traders knew well many winners were stretched thin. Monday's selling represented a nasty shift in sentiment, nothing random about it. Last Friday, the S&P 500 dropped 1.7%, marking its worst performance of 2025. It set the stage for a few down days this past week. The Nasdaq also got pummeled then, tumbling 2.2% as speculative stocks got crushed. Palantir cratered over 20% in just four sessions as the market freaked out over potential Pentagon budget cuts. ARKK, which had been looking promising, got slammed and wiped out its recent breakout. Semiconductors (the backbone of this market rally) also took it on the chin. For traders, this kind of shift forces you to rethink some things. When the same stocks that led the charge suddenly start crumbling, you have to wonder: is this just a healthy shakeout, or are we seeing early warning signs of something worse? At Truth & Trends, we've been tracking these moves. Greg warned last week that some high-flyers were already stretched to the breaking point. And now investors are bailing out. The question now: will dip-buyers step in, or will this selling snowball? Which brings us to the main event... | | | Nvidia's Earnings: Great Numbers, Terrible Reaction Everyone and their mother knew Nvidia's earnings would dominate the week. The significance extended far beyond NVDA's own stock price; the entire AI narrative hung in the balance. On paper, the numbers were stellar: - Revenue hit $39.3 billion, beating estimates
- Data center sales exploded to $35.6 billion, outpacing both Intel (INTC) and AMD (AMD) combined
- Blackwell chip rollout is ahead of schedule, already raking in $11 billion
So why did the stock tank? Because expectations were absolutely insane. Margins are starting to compress, with gross margin expected to slip to 71%. AI spending concerns are bubbling up, triggering fears of a slowdown. DeepSeek's AI “breakthrough” has people questioning whether Nvidia's chips will remain the only game in town. As we constantly hammer home in our trading framework, markets don't just react to numbers — they react to expectations. And when expectations reach this fever pitch? Even knockout results can disappoint. Nvidia was supposed to crush earnings and rocket higher afterward. Instead, the stock dropped over 6% the following day, adding to its recent slide. We've seen this movie before. As Greg put it on Tuesday, if NVDA wants to be the market's hero, it has to do everything just right. Well, what do you do when nothing’s good enough? Here’s Enrique’s full breakdown. | | | What This Means for the Market For months, Nvidia has served as the market's North Star. The company has practically carried the entire risk-on narrative on its back through the AI boom. Now? Even good news can't push it higher. That doesn't mean the bull market is dead. But it does suggest the AI trade might need to cool off. Meanwhile, we're watching high-growth stocks and high-beta names roll over. The same stocks that carried this rally are now: - Breaking down (Palantir, Meta)
- Getting dumped hard (ARKK, semiconductors)
- Losing momentum fast
So what's next? Greg has been warning that these winners were overextended and due for a pullback. Enrique maintains that momentum stocks can still perform, but only if they meet specific criteria. Which is why we're not making any grand predictions yet. Instead, we're keeping our eyes on: - Where buyers finally step in
- Whether AI stocks find support
- How markets digest upcoming economic data
That’s why we’re paying close attention to what one Wall Street legend — a man hedge funds once paid $10,000 a month for his insights — is saying right now. His latest forecast is making the rounds among serious traders, and if he’s right, this AI shakeout is just the beginning. He just released a brand-new briefing on what’s coming next. And if you have any money in the market, you need to see it before this window closes. Click here to watch before it comes down. | | | Final Thoughts So where does that leave us? Nvidia failed to ignite a fresh rally. High-flyers got crushed. And now, the market is searching for direction. Is this just a healthy reset before another leg higher? Or is something more ominous brewing? For now, we're not picking sides. Instead, we'll do what we always do — watch price action, analyze sector rotation, and monitor key support levels. Because whether we're seeing a temporary shakeout or a major shift, the market is always telling us something… if we're willing to listen. Talk again soon,
Nick
Editor, Truth & Trends | |
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