In the ever-evolving landscape of the stock market, Dow Jones futures displayed a modest uptick on Wednesday morning, accompanied by positive movements in S&P 500 futures and Nasdaq futures. The continuous rise in the stock market rally is evident, with the S&P 500 nearing record highs and the Nasdaq surpassing the 15,000 mark. Notably, small-cap stocks took the lead in Tuesday’s widespread advancement, showcasing impressive market breadth.
Key Players in AI Stocks Near Buy Points
While the Nasdaq and several leading stocks have entered extended territories, investors are advised to exercise caution in expanding their exposure. Noteworthy AI players like Nvidia (NVDA), Microsoft (MSFT), Super Micro Computer (SMCI), and MongoDB (MDB) are strategically positioned in or around buy areas.
- Nvidia and MSFT stock: Featured on IBD Leaderboard, with NVDA stock also on SwingTrader. Microsoft stock is part of IBD Long-Term Leaders.
- Super Micro and MDB stock: Listed on the IBD 50.
The article provides valuable insights into these AI stocks, emphasizing their bullish pauses and proximity to buy points. Additionally, a video embedded in the article delves into Tuesday’s market action, offering analyses of Weatherford (WFRD), Saia (SAIA), and SMCI stock.
Dow Jones Futures Today
Dow Jones futures slightly surpassed fair value, with S&P 500 futures and Nasdaq 100 futures registering a 0.1% increase. The 10-year Treasury yield experienced a marginal decrease to 3.91%. It’s important to note that overnight movements in Dow futures may not directly translate into actual trading during the subsequent regular stock market session.
FedEx Earnings Impact
FedEx (FDX) faced a plunge in overnight trading as its earnings fell short of fiscal Q2 expectations, leading to a downward adjustment in guidance. While FedEx stock saw a 0.7% decline in the regular session, it is crucial to monitor the company’s comments on the economy and the holiday shopping season for potential market implications.
Stock Market Rally Update
The stock market rally continues its post-Thanksgiving trajectory, with the Dow Jones Industrial Average and the S&P 500 rising by 0.7% and 0.6%, respectively, in Tuesday’s trading. The Nasdaq composite surpassed 15,000 for the first time since January 2022. Despite being above its 50-day line, the Nasdaq composite remains 8.5% higher, indicating potential extended conditions. Various sentiment indicators reflect elevated bullish sentiment.
Sector Performances
In the realm of Exchange-Traded Funds (ETFs), notable movements include:
- Growth ETFs: iShares Expanded Tech-Software Sector ETF (IGV) rose 0.6%, while VanEck Vectors Semiconductor ETF (SMH) increased by 0.5%, driven by Nvidia’s position as its top holding.
- Speculative Story Stocks: ARK Innovation ETF (ARKK) surged 4.1%, and ARK Genomics ETF (ARKG) witnessed a remarkable 6.8% jump.
- Sector ETFs: SPDR S&P Metals & Mining ETF (XME) surged 3.1%, Global X U.S. Infrastructure Development ETF (PAVE) rose by 1.2%, and SPDR S&P Homebuilders ETF (XHB) increased by 1.4%.
Spotlight on AI Stocks
- Nvidia Stock: Nvidia stock closed at 496.04, down 0.9%, with a focus on its potential in the AI sector in 2023.
- Microsoft Stock: Microsoft stock slightly edged up 0.2%, maintaining its position above a cup-base buy point.
- MongoDB Stock: MDB stock dipped 0.7%, nearing a valid buy point from a cup-with-handle formation.
- Super Micro Stock: SMCI stock experienced a 1.9% decline, residing above an early entry point, showcasing potential for future developments.
Investors are encouraged to stay vigilant amid market fluctuations and evolving trends, considering the extended nature of various stocks and potential resistance levels.
