Dow futures, S&P 500 futures and Nasdaq futures will open Sunday evening. Nvidia (NVDA) earnings are particularly important for the stock market rally and a slew of artificial intelligence companies. OpenAI’s ouster of Sam Altman raises further questions for Microsoft and other artificial intelligence stocks.
Stocks enjoyed another strong week of rebound, buoyed by mild inflation and falling Treasury yields. The major stock indexes paused late in the week but didn’t want to fall. A pause or pullback can be constructive, allowing some leaders to control or adjust their emotions. Other entries.
Nasdaq is about to enter “power trends,” maybe as early as Monday. Power trends are a time to be aggressive but still disciplined.
Nvidia, Microsoft, Meta and Google stocks are all in buy territory, as are PLTR stock and Super Micro stock. Clearly, Nvidia’s profits could be a huge positive or negative catalyst.
Microsoft stock, Nvidia and Meta platforms are all live IBD rankings.META stock is now online swing traderMSFT stock is located at IBD Long-Term Leader Nvidia stock, Microsoft and AMD are all on the list IBD50Microsoft, Meta Platforms and SMCI stocks are among IBD Large Cap 20.
Dow Jones Futures Today
Dow Jones futures, S&P 500 futures and Nasdaq 100 futures open at 6 p.m. ET on Sunday.
Stock market rebounds
A benign inflation report boosted stocks higher on Tuesday before posting modest gains for the rest of the week.
The Dow Jones Industrial Average rose 1.9% last week stock market tradingThe S&P 500 rose 2.2% and the Nasdaq rose 2.4%.
The small-cap Russell 2000 surged 5.4% despite being rejected by its 200-day moving average. Invesco S&P 500 Equal Weight ETF (RSP) rose 3.4% and returned to the 200-day line.
First Trust Nasdaq 100 Equal Weight Index ETF (QQ), which has been a good proxy for growth stock leadership, rose 2.9% to surpass its October high.
The Nasdaq 100 has risen to just below July’s 52-week high.
The Nasdaq and S&P 500 are currently trading near short-term highs on September 1, with the next hurdle being July’s 52-week high.
The market is taking a pause, but it’s definitely not a correction. The S&P 500 and Nasdaq have posted four consecutive days of gains. Since bottoming in October, the indexes have fallen only twice in late trading.
Leading stocks performed well and showed an expanding trend. Chips, software and some e-commerce, retail, financial, travel and industrial/aerospace stocks are among the leaders.
The 10-year Treasury yield plunged nearly 19 basis points to 4.44%, the lowest in two months.
U.S. crude oil futures fell 1.7% to $75.89 a barrel last week. Crude oil hit its lowest level since July this week, but oil prices soared 4.1% on reports that OPEC+ may further cut production.
Not all market rallies are created equal. Some are choppy and short-lived, while others show real power. Strong trends mark the latter.
Power trends include several criteria, some of which are already met.
The Nasdaq has traded above the lows of the 21-day exponential moving average for at least 10 consecutive trading days, and the 50-day moving average is trending higher.
The 21-day moving average must close above the 50-day moving average for five consecutive trading days. Monday will be day five.
If the Nasdaq rises on Sunday, a strong trend will begin; if not, a strong trend will begin on the next up day.
The power trend is a more radical era, including a greater openness to radical growth brands.
Market rallies in power trends often result in big gains, but sometimes power trends fade quickly. Therefore, please continue to monitor market trends.
Among growth ETFs, iShares Expanded Tech-Software Sector ETF (IGV) rose 2.65% to a 52-week high. MSFT stock is a major constituent, and PLTR stock is also a significant holding. VanEck Vectors Semiconductor ETF (SMH) jumped 3.4%, hitting a record high. Nvidia stock is SMH’s largest holding.
SPDR S&P Metals & Mining ETF (XME) rose 6.5% last week. Global X U.S. Infrastructure Development ETF (pave) rose 3.6%. SPDR S&P Homebuilders ETF (Xinhong) rose 6.3%. Energy Select SPDR ETF (XLE) rose 1.5%, with Healthcare Select Sector SPDR Fund (XLV) 1.6%. Industrial Select Sector SPDR Fund (XLI) rose 3%, breaking the downward trend.
Nvidia’s earnings are due Tuesday night. Wall Street expects third-quarter earnings to soar 481%, with revenue growing 173% to $16.19 billion. But after two massive beat-and-raise reports, investors may be looking for something more.
Analysts will also be looking for comments on the impact of China’s tightening export controls.
Nvidia shares rose 2% last week to 492.98, moving higher from buy territory double bottom baseThe official buy point is 476.09. Like the broader market and many of the leaders, NVDA stock has largely stalled after Tuesday.
Artificial Intelligence Stocks
Microsoft shares rose 17 cents to 369.84 on Friday, down 1.7% from Thursday’s all-time high.The stock price remains within the range of 366.78 points bottom of cup Buy some. A longer pause will allow the moving average to catch up.
On Tuesday, Microsoft announced the launch of a self-developed artificial intelligence chip to reduce its reliance on Nvidia and other companies.
Shortly before the close on Friday, Microsoft backed OpenAI says CEO Sam Altman will exit Because “the board no longer has confidence in his leadership.” On Friday night, OpenAI president and co-founder Greg Brockman said he was resigning due to “today’s news.”
Most of Friday’s losses came from the OpenAI news, with MSFT shares also down 1% in after-hours trading.
Google shares rose just over 2% last week to 135.31, and despite falling 1.2% on Friday, are back above their 50-day moving average. Investors can use Thursday’s high of 137.22 as an early entry point. flat baseThe official buying point is 141.22.
The Information reported late Thursday that Google will delay the launch of Gemini, a potential competitor to OpenAI’s ChatGPT 4, until early 2024.
Meta shares surged 1.9% to 335.04 buying area The integration dates back to late July.
According to data, PLTR stock rose 4.2% to 20.49, clearing the 20.24 base buy point Market Smith Analysis. 23% above the 50-day line, a pause near these levels is healthy. But Palantir stock shows no inclination to do so.
SMCI stock rose 8.5% this week to 288.59, led by a 14.9% gain on Tuesday. It went from a less than ideal double bottom buy point to a 317.50 buy point. AMD stock is pausing near some key levels and heading down a downward-sloping trendline. A break above Wednesday’s high of 297.48 may provide an early entry opportunity.
These are just some of the many AI-related games, many of which could fluctuate depending on Nvidia’s earnings and guidance.
Market rebound analysis
The stock market rally continues to perform well, which is reflected in the upcoming momentum trend. Investors can continue to increase exposure, although they may decide to wait for a new setup and Nvidia’s earnings.
There are a lot of important earnings reports next week. On Tuesday, the same day Nvidia released its report, Abercrombie & Fitch (ANF), American Eagle Apparel (AEO), urban clothing store (urban network) and Chinese Mingchuang premium products (PolymorphismSO) are readily available.
Stay tuned for the watch list. You want to be ready if the market rebounds and heads higher again. On the other hand, have a plan to respond if the market or a specific position experiences a significant correction.
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