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Gelonghui May 21｜Nvidia announced an $80 billion buyback, and both its Q1 revenue and Q2 guidance exceeded market expectations. However, why did its stock price fall after hours (currently down 1% in nighttime trading)? Market participants pointed out two real reasons:First, Nvidia's adjusted gross margin recorded 75.0%, while the internal preset benchmark at some institutions was 75.1%. This difference of 0.1% triggered automated quantitative programs to reduce positions. This reaction has nothing to do with fundamentals and is purely a mechanical response by machines.Second, before the earnings report, retail investors bought both Calls and Puts heavily, and the options market priced in a 6.3% single-day swing for tonight. In the end, the stock price did not move within this range, implied volatility collapsed, and both sides of options holders were harvested by market makers.Some market participants also speculate that a deeper logic behind Nvidia's strong earnings release followed by a share price decline is that institutions simply do not want to push Nvidia another 30%-40% higher at this point. The main players need it to consolidate at elevated levels so that they can quietly shift large amounts of capital to other lagging sectors. The slight post-market dip is deliberately cooling the sentiment, not due to any fundamental issues.

Yields and credit spreads can easily rise further.

Glonghui, May 21 | Bernstein has raised the target price of a certain exchange from $95 to $100 and maintained an “in-line with the market” rating.