Nvidia stock fell following a record earnings beat, as concerns regarding "circular financing" and lofty valuations sparked a sell-off. Critics allege the chipmaker inflates demand by investing in startups that buy its GPUs.

Nvidia weakness and a shifting dispersion trade signal a potential 5% to 10% pullback for the S&P 500. With volatility rising and correlations tightening, a break below $170 for NVDA could spark a broader market decline.