According to The Kobeissi Letter, the 10 major U.S. equity ETFs have attracted over $37.5 billion over five trading days ending Tuesday.
- The Vanguard S&P 500 ETF has attracted more than $16.9 billion in inflows over five trading days ending Nov. 10.
- This was followed by the Nasdaq 100 ETF Invesco QQQ Trust and the Vanguard Morningstar Total Stock Mkt ETF.
- Future Fund managing director Gary Black also advised buying the dip in Nvidia’s shares.
Investors are pouring billions into the U.S. stock markets despite a turbulent week on Wall Street, which suggests that the latest bout of volatility has not dampened the dip-buying appetite. According to The Kobeissi Letter, investors are buying the dip in U.S. equity exchange-traded funds at an “unprecedented pace,” with the 10 major U.S. equity ETFs having attracted over $37.5 billion over five trading days ending Tuesday.
And this comes amid Nvidia Corp.’s (NVDA) CEO scandal, which has dragged the stock nearly 11% lower this week alone.
Where’s The Money Going?
In a post on X, the market commentator noted that the Vanguard S&P 500 ETF (VOO) attracted more than $16.9 billion in inflows over five trading days ending Nov. 10, the most among major U.S. equity ETFs.
This was followed by the Nasdaq 100 ETF Invesco QQQ Trust, Series 1 (QQQ), and the Vanguard Morningstar Total Stock Mkt ETF (VTI), which attracted over $5.3 billion and $3.3 billion, respectively.
The State Street SPDR Portfolio S&P 500 ETF (SPYM) and the Invesco NASDAQ 100 ETF (QQQM) saw inflows of more than $2.6 billion and $2.2 billion, respectively.
Meanwhile, the Direxion Daily Semiconductor Bull 3X ETF (SOXL) and the ProShares UltraPro QQQ (TQQQ) saw inflows exceeding $2.1 billion and $1.4 billion each.
“Investors are aggressively buying the dip,” The Kobeissi Letter said.
Despite the recent volatility, all three U.S. benchmark indexes are on track to end the week higher and post their best week since August. The Nasdaq and the S&P 500 are headed about 3% higher this week, while the Dow is on track to gain nearly 2%.
Nvidia Leadership Crisis: Is The Worst Over?
Although CEO Jensen Huang’s extramarital affairs, one with an alleged Chinese spy and separate reports of two others with a company executives, have rattled its shares in the past week, some experts believe that it will not impact the company’s long-term value.
Future Fund managing director Gary Black noted in a post on X earlier on Thursday, “I’ve watched corporate dramas like $NVDA play out for 30 years. Most play out in the same way: The stock drops as the uncertainty drags on until they reach their inevitable outcome – in this case, Jensen Huang resigns as CEO. The day Jensen resigns, which is when there is maximum uncertainty as portfolio managers finally confront reality, investors should buy $NVDA stock.”
Shortly after, on Thursday evening, Huang resigned from his position at the company.
The chipmaker’s chief financial officer, Colette Kress, has stepped in as interim CEO as the board continues to search for a full-time replacement, both internally and externally. Other analysts have also echoed this view. Yardeni Research called the Nvidia slump as a “buying” opportunity after the midterm elections.
TF International Securities analyst Ming-Chi Kuo called Huang’s resignation a “one-time clearing event” for the stock market. Kuo highlighted that with Huang now fully separated from the company, further congressional summons or investigations would likely have lower direct impact on the stock. He also added that any effects from Huang’s future moves are still too early to assess.
The analyst also said that the succession plan is unlikely to meaningfully affect Nvidia’s product development and competitiveness before 2028.
Retail Is Also Buying The Dip In Nvidia
Retail investors are also leaning toward buying the dip, with a Stocktwits poll showing that 58% of respondents are buying the company’s stock amid this week’s slump.
One user said, “$NVDA smart money stacking after hours. Jensen is behind us, Nvidia’s continued success lies ahead. Let’s get ready to smash earnings on the 17th! Back to new ATH’s.”
Another user said, “$NVDA that was fun, wasn’t it. Long now tho. Levels to watch were posted last night, I think around 200 could be new high in this new range it’ll need to trade in after getting annihilated. Maybe even by earnings. Good buy today under 160.”
Nvidia has said that it will report its third-quarter (Q3) results on Nov. 17, as planned.
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