Chip stocks are rallying hard, even though NVIDIA's Jensen Huang is caught up in a scandal.
The Philadelphia Semiconductor Index jumped 7% and the Nasdaq-100 rose 3.4%, showing how markets often hit their lowest point on bad news before bouncing back.
Interestingly, while most chip companies saw gains, NVIDIA shares still dropped 4.3%.
Record options trading signals investor calm
After weeks of wild swings and heavy selling, things are finally calming down. Market volatility spiked but is now easing off.
Options strategist at Baird Strategas Laurent Laskowski says record options trading and those volatility spikes were signs that investors were ready to move on from panic mode.
Even with NVIDIA under a cloud, the chip sector could see more growth soon if other big tech names keep performing well.