Why did Nvidia plummet last night? Is there a big capital sell-off?

Nvidia's significant decline in stock price last night can be attributed to a combination of factors:

1. Market Reaction to Jobs Report: The US Nonfarm Payrolls data for February, which showed an unemployment rate above expectations, likely contributed to the market's negative sentiment. This, in turn, affected Nvidia's stock, as it is sensitive to economic indicators due to its data center segment's reliance on economic conditions.

2. ESG Fund Managers' Concerns: ESG fund managers, who had previously invested in Nvidia, are now expressing concerns about its valuation, potentially indicating a bubble. Their reduced holdings in Nvidia shares, as reported by Bloomberg, suggest a lack of confidence in the stock's sustainability.

3. Overall Tech Sector Decline: The tech sector experienced a downturn, with NASDAQ dropping by a full percentage point. This broader market decline likely had a spillover effect on Nvidia's stock, as it is part of the tech industry.

4. Valuation Concerns: Nvidia's rapid growth and surging stock price have led to concerns about its valuation being overextended. The company's market cap recently crossed $2 trillion, raising questions about its sustainability.

In summary, Nvidia's plummet last night can be attributed to a combination of market reaction to the jobs report, concerns about valuation, and a broader downturn in the tech sector. These factors, coupled with ESG fund managers' doubts about the stock's sustainability, likely contributed to the significant decline in Nvidia's stock price.