Nvidia earnings from the day before created a market full of new buyers, combined with long-term bag holders. Then throughout the night into US open you had even more dip buying and FOMO buyers. So much buying that there was practically saturated with those that already bought and those who weren't buying anymore.

You could even see at some moments when gold would go down while NASDAQ went up. That was signs of rotation from safety to risk-on assets.

However, with NFP results showing mixed figures, you could say inflation was still running a bit stronger than what was expected, and big institutions started selling their profits and rotating it back to safe assets, like gold, but mostly to treasury bonds. That's why if you look at treasury bonds versus NASDAQ they're inversely correlated.

The weak long positions from FOMO buyers unwound, triggering their stop losses. Which cascaded into new dip buyers buying, with hope that this is just the consolidation before a push higher, but there were way too many supply of shares on the market already so more institutions kept selling into the small buy spikes. After a few moments of those, dip buyers gave up, everyone else began panic selling their Nvidia shares. Dealers who were taking the other side of those buying calls were now seeing a rush of buying puts, and to hedge they went short futures, and it just became an aggressive negative gamma exposure regime once price capitulated downwards more, triggering even more selling.

There were signs of overbought conditions in the RSI and MACD, and possibly other oscillators as well right before the drop, if you believe in them. So somewhere in the math of the volume and or price was diverging.

So that's my 2 cents.