As Dow Jones futures, S&P 500 futures, and Nasdaq futures gear up for the Sunday evening opening, the stock market rally is navigating pivotal terrain. After a challenging start to 2024, marked by the first weekly losses for major indexes since October, the S&P 500 and leading stocks exhibited late-week support, offering potential buy signals.
The market’s trajectory hinges on the rebound, with equities closely following cues from the bond market, particularly concerning Treasury yields hovering around the 4% mark. Notable stocks, including Nvidia, PulteGroup, Super Micro Computer, Eli Lilly, MercadoLibre, and Snowflake, have demonstrated constructive actions amid this volatile landscape.
The upcoming week promises significant events, such as the SEC’s anticipated approval of the first spot Bitcoin ETFs, potentially expanding institutional involvement. Additionally, the CES tech show and JPMorgan Healthcare Conference are on the horizon, coupled with the commencement of earnings season featuring heavyweights like JPMorgan Chase, Citigroup, and UnitedHealth.
Nvidia, a standout on IBD Leaderboard, inches closer to a buy point following predictions of the AI chip giant generating $100 billion in free cash flow over the next two years. Eli Lilly and MercadoLibre find a spot on SwingTrader, while Nvidia, Snowflake, Super Micro, and MercadoLibre are part of the IBD 50.
Despite the challenging market conditions, investors can potentially identify buying opportunities by staying engaged, focusing on stocks showing support and relative strength. As the market grapples with crucial levels, maintaining an open mind and a watchful eye on potential developments remains essential.
