The Nasdaq 100 Has Become Entirely Dependent On Nvidia (NDX)

Nvidia Corporation (NVDA) is driving massive distortions across the markets, making them appear stronger than they are. The most considerable distortions are in the Nasdaq 100-Index (NDX) and the Invesco QQQ Trust ETF (NASDAQ:QQQ). This has driven wide gaps between the market cap-weighted indexes and ETFs and the equal-weight indexes and ETFs.

More Than 40% of The Gains

Since the start of 2024, Nvidia has accounted for nearly 42.2% of the gains in the Nasdaq 100 through June 5. What this means is that out of the 2,209 points that the Nasdaq 100 has gained, Nvidia has contributed 932 of those points. This is a huge sum, despite the index’s current number of advancers standing at just 62 and the number of decliners at 42.

This compares to the NASDAQ equal weight index, where even here, Nvidia is responsible for nearly 31% of all the gains and has added roughly 84 points to the equal weight…