NVIDIA's (NVDA.US) previously optimistic guidance should have attracted bargain-hunting investors. However, the tech stock sell-off and disappointing employment data have left investors battered, forcing them to choose between cutting losses or re-entering the market. Goldman Sachs' trading desk strategists noted that increased short-selling activity across macro products, including ETFs and futures, contributed to Thursday's market plunge. The desk also highlighted deteriorating liquidity, with the S&P 500 futures ToB depth indicator—measuring market resilience against large trades—plunging below $5 million versus its one-year average of $11.5 million, exacerbating volatility.

Goldman Sachs predicts Friday will witness the largest November options expiration in history, with $3.1 trillion in notional value set to expire—including $1.7 trillion in SPX index options and $725 billion in single-stock options. Such massive expirations typically fuel market swings. Earlier this week, Goldman's trading desk suggested current conditions favored stock rebounds after four weeks of declines in high-risk assets, noting "recovery signs" in quantum computing, cryptocurrencies, and rare metals. This reversal caught investors off guard, as they had spent the week buying options betting on continued tech giant rallies. With NVIDIA dropping 3.2% on Thursday and few positive catalysts remaining this year, these positions now face likely losses.

Robby Knopp, co-head of Optiver's S&P 500 options trading, observed: "NVIDIA's earnings triggered a strong long-buying wave, showing investors positioned for rebounds rather than hedging against declines." As U.S. stocks tumbled, the VIX volatility index spiked 19% intraday Thursday. Traders hammered by rising volatility now pin hopes on renewed buy-the-dip momentum. Susquehanna's Chris Murphy questioned in a client note: "After NVIDIA's results, investors wonder—what catalysts remain for year-end rallies?"

Citi's Stuart Kaiser identified Black Friday retail data and upcoming Fed meetings as the only potential sentiment boosters left. Kaiser noted Wednesday: "Retail trading plummeted over the past 2-3 weeks," with their share of total U.S. equity volume dropping from 16% to 11%. Meanwhile, Thursday's stronger-than-expected U.S. jobs data proved double-edged—signaling economic recovery while reducing odds of December Fed rate cuts. A steady Fed could trigger further stock declines, disrupting systematic investors' equity accumulation plans. Yet retail buy-the-dip behavior—which powered April's market rebound—remains a wildcard. Interactive Brokers' Steve Sosnick noted: "This strategy has historically worked well for many."