After Nvidia’s Big Earnings—What’s Next for Investors?

Hey, it’s Summer!
Volatility jumped and markets pulled back hard this week, but corrections like this are normal. In this issue, I’ll break down what happened and why now is a time for strategy, not fear.

Data is provided by Google Finance
*Stock data as of market close, cryptocurrency and gold data as of Friday 6:00pm ET

This week saw a broad pullback across all three major indexes, even after Nvidia delivered a near-perfect earnings report. The S&P 500 fell about 2%, the Nasdaq dropped nearly 3%, and the Dow slipped roughly 2%. The reaction surprised many investors, but the most likely explanation is growing concern about whether downstream companies can keep up with the explosive demand that mega-caps like NVDA continue to report. In other words, markets are starting to question whether the rest of the supply chain can actually deliver the earnings needed to justify current valuations.

Bitcoin extended its slide, dropping more than 10% and breaking below the $85,000 level. Market volatility picked up as the CBOE Volatility Index (VIX) jumped over 19%, reflecting growing fear sentiment in the market. Gold traded mostly sideways, holding near the $4,050 range as investors balanced risk aversion with profit-taking after recent highs.

This week’s heatmap shows a sharp rotation out of high-growth, high-valuation sectors, with technology, semiconductors, and consumer cyclicals all facing heavy selling. Microsoft (–7.44%), Nvidia (–5.92%), Oracle (–10.81%), AMD (–17.43%), and Micron (–15.99%) were among the hardest hit as investors stepped back from AI-exposed and rate-sensitive names.

The one major standout was Google (+8.41%), which outperformed the entire market after Berkshire Hathaway disclosed a multibillion-dollar stake. Buffett’s move sparked a wave of institutional buying and provided a rare bright spot in an otherwise weak communication-services sector. Meta, by contrast, slipped about 2.47%.

Defensive pockets performed relatively better. Healthcare names like Lilly (+3.36%) and Johnson & Johnson (+4.07%) saw solid gains as investors rotated into stable earnings and lower-volatility sectors. Consumer staples such as Walmart (+2.77%) and Coca-Cola (+2.52%) also attracted inflows.

Financials and Energy remained under pressure, with JPMorgan (–1.84%), Wells Fargo (–2.00%), Chevron (–4.85%), and Exxon (–1.85%) all finishing the week lower.

Overall, the snapshot reflects a clear trend: money is flowing out of high-beta tech and into defensives, with Google’s Berkshire-driven rally being the only major exception in a week dominated by risk-off sentiment.

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This week’s pullback across major indexes wasn’t pleasant to watch, but it’s also not something long-term investors should be panicking about. The S&P 500, Nasdaq, and Dow all fell around 2–3%, and volatility surged as investors rotated out of high-growth tech and into more defensive sectors. Even with Nvidia posting strong earnings, the market continues to question whether the rest of the supply chain can keep up with the AI boom. Meanwhile, Bitcoin slid more than 10%, adding to the risk-off mood.

But here’s the bigger point: pullbacks like this are normal, and they’re exactly where opportunities start to form. It’s easy to get caught up in the short-term noise, yet the companies with solid fundamentals don’t suddenly become “bad” just because the market went red for a few days. If anything, these moments allow patient investors to enter or average down at more attractive valuations.

For me personally, I’ve already begun picking up shares as the market pulled back, and I’m planning to add more if we see deeper declines. It also wouldn’t be surprising to see the S&P 500 drop another 5% from here — after all, it’s only about 5% off its all-time high from October. Corrections of this size happen constantly in healthy markets, and they rarely change the long-term trajectory of quality companies.

So instead of reacting emotionally, this is a good time to reassess:
Which companies do you genuinely believe in? Which ones have strong balance sheets, real earnings, and durable demand?
Focus on those. Stick to fundamentals. Let volatility give you better prices instead of scaring you out of your positions.

Last week’s Result:
Would you buy Bitcoin now that it’s trading below $100,000 USD?
Most popular answer: No (80%)

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_{*Per Masterworks data. Investing involves risk. Past performance not indicative of future returns. Important Reg A disclosures: masterworks.com/cd}

Disclaimer: The information provided in this newsletter is for educational and informational purposes only and should not be construed as investment advice. I am not a licensed financial advisor, and the opinions expressed here are based on my personal research and portfolio decisions. Investing in securities involves risk, including the potential loss of principal. Past performance is not indicative of future results. Always do your own research or consult with a licensed financial professional before making investment decisions.