Dow Jones futures, S&P 500 futures and Nasdaq futures will open Sunday evening. Nvidia and several artificial intelligence chip companies are working on it.
X
Stocks pulled back last week, and Thursday’s downside reversal pushed the uptrend into “under pressure.” But major stock indexes rebounded on Friday. A few leaders issued buy signals, but the top fakes continued. Many are close to early entry or working on new integrations.
Investors should pay close attention and may consider some incremental purchases. Still, this is a range-bound market.
Nvidia (NVDA) fell last week but is about to form a new base. Broadcom (AVGO), British Semiconductor (TSM) and recent IPOs Astra Labs (University of Alabama) are also studying potential bases, while Arm Holdings (arm) already has one. super microcomputer (SMCI) is closely connected with AI chips and is also laying the foundation.
Tesla (TeslaTesla shares have retreated amid weak first-quarter deliveries and other negative news. But on Friday night, Musk said Tesla would launch self-driving taxis on August 8, and the stock price rose sharply.
Nvidia and ARM stocks rise IBD rankings.Nvidia stock and Arm Holdings are both in IBD50.Nvidia, Broadcom and Super Micro stocks are in 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.
Remember what you did that night Dow Jones Futures and other places that won’t necessarily translate into actual transactions on the next regular basis stock market Meeting.
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Stock market rebounds
The stock market rebound featured small to solid losses each week, but closed higher on Friday.
The Dow Jones Industrial Average fell 2.3% last week stock market tradingAfter regaining its 50-day line on Friday, the S&P 500 index fell 0.95% and the Nasdaq fell 0.8%, but both closed above the 21-day line. The small-cap Russell 2000 index fell 2.9% and was unable to close higher than the 21-day line on Friday.
Stocks fell sharply Thursday on tensions in the Middle East. But on Friday, stocks rebounded despite the tensions. strong jobs reportPerhaps as Middle East fears recede.
The Dow rebounded on Friday after falling below its 50-day moving average on Thursday. The S&P 500, Nasdaq and Russell 2000 are back at their 21-day moving averages. The Nasdaq and Russell 2000 rebounded from their 10-week moving averages.
Still, Friday was an insider trading day for the major indexes, and volume was down from Thursday.
Despite some daily volatility, the Nasdaq has been trading relatively tight since early March and found support at its 10-week line. The Russell 2000 has been at the top of a consolidation since late 2023. This left many leading stocks on base or for the week, with some leaders trying to clear entry points but many quickly pulling back.
The 10-year Treasury yield surged 18.5 basis points to 4.38%, the highest closing price in 2024. On Wednesday morning, the 10-year Treasury yield hit a 2024 intraday high of 4.43%, and the probability of the Federal Reserve cutting interest rates in June dropped to just 49%.
U.S. crude futures rose 4.5% this week to $86.91 a barrel, hitting their highest level since October.
ETF
Among growth ETFs, iShares Expanded Tech-Software Sector ETF (IGV) fell 1.3% this week. VanEck Vectors Semiconductor ETF (SMH) fell 1%. NVIDIA is SMH’s major shareholder, and Broadcom and TSMC are also key holdings.
SPDR S&P Metals & Mining ETF (XME) rose 2.9% last week. Global X U.S. Infrastructure Development ETF (pave) fell 0.2%. US Global Jets ETF (Jeters) fell 4.2%. SPDR S&P Homebuilders ETF (Xin Hong) fell 2.7%.
Energy Select SPDR ETF (XLE) jumped 3.9%, Healthcare Select Sector SPDR Fund (XLV) fell more than 3%. Industrial Select Sector SPDR Fund (XLI) fell 0.2%. Financial Select SPDR ETF (XLF) fell 1.3%.
The ARK Innovation ETF reflects the more speculative story stocks (alke) sold off 5.9% last week, with the ARK Genomics ETF (arkg) plunged 7.1%. Tesla stock is the top holding of the Ark Invest ETF.
Tim the market with IBD’s ETF market strategy
NVIDIA Stock
Nvidia shares fell 2.6% to 880.08, falling for a second straight week after rising for 11 consecutive weeks. Shares did rebound on Friday, closing above the 21-day moving average.The AI chip leader is now entering its fourth possible week flat baseThe buy point is 974, which was the high on NVDA stock’s March 8 reversal day. Another week could allow the rapidly rising 10-week line to narrow the gap significantly.
Thursday’s high of 906.34 will provide an opportunity to enter early from the very short trend line.
A new foundation will allow investors to join or join the clear leader in the artificial intelligence stock market rally. Nvidia’s breakthrough will have a significant impact on the broader market, especially other artificial intelligence chip stocks.
Mike Webster on continuing to own SMCI stock
Artificial Intelligence Chip Stocks
Broadcom shares rose 1.1% last week to $1,339.43, holding on to the 21-day line and rebounding from the 10-week line again. AVGO stock briefly cleared a downward sloping trendline on Thursday before reversing lower. Shares have entered a possible bottom with a five-week potential entry point of 1,438.17. Investors can use Thursday’s intraday high of 1,403.98 as an early entry point.
ARM shares fell 0.1% this week to 124.82, finding support at the 10-week line but encountering resistance at the 21-day line. The stock price has established a foundation at 164 points. buy someBut the downward sloping trendline or the March 26 high of 145 may be places to at least establish a position.
TSMC shares rose 1.2% to 141.37, finding support in the 21-day index. This foundry giant that produces chips for Nvidia, apple (AAPL) and many other factors, a possible bottom is already weeks away. Investors can use Thursday’s high of 146.75 as an early entry point.
TSMC will announce March sales on April 10 and first-quarter earnings on April 18. This could have a significant impact on artificial intelligence chip manufacturers as well as chip equipment manufacturers.
Astera Labs shares fell 3.8% last week to 71.34, but rose on Friday. The AI networking chip maker began trading on March 20 and hit a record high of 95.21 on March 26. ALAB stock is eight days away from a possible move higher. IPO base, which may be as short as two weeks or 10 days. The potential buy point is 95.21, although investors may seek early entry, with the 75 area being a resistance area.
Super Micro stock is an honorary AI chip company whose servers are a favorite destination for chips from Nvidia and others. SMCI stock plunged 6.1% last week to 948.02, below its 21-day line. A 10-week test may be imminent, and Super Micro stock is close to a new bottom. Investors can use Thursday’s high of 1,057.18 as an early entry point.
Astera Labs is a star in artificial intelligence network chips
Tesla Stock
Tesla shares fell 6.2% this week to $164.90, falling again from near the 10-week moving average. The stock price hit an 11-month low on Friday.
The electric-car giant reported first-quarter deliveries on Tuesday that were well below even the most pessimistic forecasts.Meanwhile, Reuters reported on Friday that Tesla is scrapping plans for a $25,000 electric caronce again shifting focus to robotaxis without steering wheels.
If true, this would suggest that Elon Musk is betting Tesla’s future growth almost entirely on autonomous driving.
Musk responded on his social networking site
Late Friday, Musk said Tesla would launch robotaxis on August 8. He didn’t reveal other details, such as whether fans will see prototypes, designs or just images.
Tesla’s Full Self-Driving is still a Level 2 system, which means a human driver must be ready to take over the wheel.
But Tesla’s stock price soared 3.8% after the close.
what to do now
The stock market rally is taking a well-deserved break, with the moving averages narrowing the gap. This could set the stage for another leg higher, but there’s no guarantee that will happen anytime soon, or even at all.
Meanwhile, sideways moves can be tricky, with many leading stocks hovering near buy points before quickly pulling back. Investors could have tried some buying, but would have had to give up a lot.
With U.S. Treasury yields at 2024 highs and markets preparing for another delay in a Federal Reserve rate cut, the market rebound faces key potential headwinds.
Investors may want to wait for more convincing strength, such as the Nasdaq and S&P 500 breaking above Thursday’s intraday highs and testing historical levels, before significantly increasing exposure.
Such a broad market move could be just what Nvidia, ARM and other leaders in artificial intelligence chips need.
Be sure to work on your watch list and look for those emerging settings. While this article focuses on artificial intelligence chips, there are plenty of software stocks waiting to get in, as well as leading stocks from a variety of industries.
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