Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The Federal Reserve meeting looms as investors look to shift toward lower interest rates.
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The stock market rally enjoyed modest weekly gains, with major indexes pulling higher after Wednesday. The S&P 500 hit a 2023 high on Friday while the Nasdaq is on its cusp. A number of stocks are trying to exit, including several stocks.
Advanced micro devices (AMD) exceeded buy points last week on new AI chips, presenting a challenge Nvidia (NVDA) in the huge and fast-growing AI accelerator market. For its part, Nvidia stock has bounced back toward a buy point and faltered in some early entries. Holding arm (arm) broke out of the IPO base on Friday. Broadcom (Afgo) Buy point pushed back on Friday after earnings. Taiwan Semiconductor Co., Ltd (TSM), which makes chips for Nvidia, AMD, and Broadcom apple (Camel) and several others, mostly of arm slide designs, made an early entry on Friday.
while, Tesla (TSLA) continues to trade tightly while slowly advancing towards aggressive entry points.
Finally, the US Food and Drug Administration approved the first gene-editing treatment for… CRISPR therapeutics (CRSP) And Vertex Pharmaceuticals (Vertex). But CRSP stock, which rose on Friday morning and over the past few weeks, reversed sharply on the announcement in a classic “sell the news” event.
The Fed’s last meeting of 2023 takes place on Tuesday and Wednesday. No action is expected, but Fed Chairman Jerome Powell could signal that he and policymakers are now leaning toward lowering interest rates in 2024.
The video embedded in the article highlighted the weekly market movement and analyzed Arm Holdings, Microsoft (MSFT) and CRSP stock.
ARM stock added to IBD Leaderboard On Friday, join Nvidia. Nvidia stock is on SwingTrader and Bahraini dinar 50. AMD was the IBD stock of the day on Thursday.
Dow jones futures today
Dow Jones futures open at 6pm EST on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market pool
The stock market rally started the week on a downward note, but rebounded on Thursday and ended with modest gains on the major indexes.
The Dow Jones Industrial Average rose 2 points in stock market trading last week. The Standard & Poor’s 500 rose 0.2%. The Nasdaq Composite rose 0.7%, staging a bullish reversal after shattering some short-term lows on Monday.
On Friday, the S&P 500 surpassed its 2023 high set in July, while the Nasdaq index hit its highest closing level of the year. A decisive clearing of the recent range may indicate that the market rally has begun another higher phase.
The small-cap Russell 2000 rose 1%, returning as market breadth improved.
Some leading stocks broke out over the past week, while many others formed handles or fell to key levels. While chips and software continued to perform well, industrial, financial and travel companies also showed some strength.
The yield on the 10-year Treasury note rose by 2 basis points to 4.24%. The 10-year bond yield jumped more than 11 basis points on Friday after the November jobs report. The two-year Treasury yield jumped 16 basis points to 4.725%, almost all of that on Friday.
Recently, the inverse relationship between Treasury yields and stock prices has weakened. Investors are no longer worried about inflation or interest rate hikes by the Fed, nor do they want the economy to slow down too much. November jobs report
U.S. crude oil futures fell 3.8% to $71.23 a barrel last week, even with Friday’s 2.7% rebound from multi-month lows.
One caveat: The CBOE Volatility Index, or VIX, fell on Friday to the lowest level since January 2020. When a measure of market fear is unusually low, it’s a sign of excessive bullishness or complacency. This increases the risk of a market decline. But it doesn’t have to happen immediately, nor does it have to be deep or long-lasting.
ETFs
Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) fell by 0.9%, but after five consecutive weeks. VanEck Vectors Semiconductor ETF (Trait) by 0.8%, but with a significant bullish reversal late in the week. Nvidia, AMD, Broadcom, and TSM stocks are all among SMH’s top five holdings.
Reflecting more speculative stocks, the ARK Innovation ETF (Ark) by 1.55% last week and the ARK Genomics ETF (Arkj) decreased by 1.4%. Tesla stock is a prime holding across Ark Invest’s ETFs. CRSP stock is also one of Cathie Wood’s best stocks.
SPDR S&P Metals and Mining Fund (XME) fell 4% last week, with coal, steel, copper and gold prices weakening. Global X US Infrastructure Development Foundation (ETF)cradle) rose by 0.2%. US Global Jets ETF (Planes) rose by 6.5%. SPDR S&P Homebuilders ETF (XHB) jumped 3.5% to a record high. Energy Select SPDR ETF (XLE(Down by 3.3% and Healthcare Sector SPDR Fund)Forty-fifth) rose 0.2%, and VRTX stock was a component. Selected Industrial Sector SPDR Fund (forty-first) rose by 0.2%.
Financial Select SPDR ETF (XLF) fell 0.1% and the SPDR S&P Regional Banking Fund (ETF)Cree) jumped 3.2%.
The top five Chinese stocks to watch now
Stocks chip near buy points
AMD stock jumped 6.2% to 128.92 last week. Shares cleared two cup-with-handle buy points on Thursday, 122.11 on the daily chart and 125.37 on the weekly chart. While AMD stock has extended slightly from the 122.11 entry level, it remains in the buy zone from 125.37. AMD on Wednesday unveiled its new AI chipset to take on Nvidia. microsoft, Meta platforms (dead) And inspiration (ORCL) are early buyers, seeking to reduce their reliance on Nvidia GPUs.
Nvidia stock started the week falling to the 50-day line, but rebounded on Thursday and Friday. Shares finished up 1.6% to 475.01, returning above the 21-day moving average. NVDA stock is still on the cusp of reclaiming its still-valid double-bottom buy point at 476.09, although investors could have taken action Friday afternoon.
Arm stock jumped 7.7% to 67.23 on Friday, beating its IPO base of 64.92 cups with a handle in bulk. The relative strength line reached a record high on the breakout. The UK wireless chip design giant went public at 51 shares and reached 69 shares intraday on September 15, the second day of trading. ARM designs are used by a large number of chip makers.
AVGO stock rose 1.5% on the week to 944.30, rebounding from its 50-day/10-week line on Thursday. On Friday, Broadcom stock was back above a firm buy point of 923.67 that remains valid in very heavy trading. Stocks also decisively cleared the 21-day line and broke a brief downtrend.
Late Thursday, Broadcom earnings slightly beat fiscal fourth-quarter estimates. The chip and software giant provided upbeat guidance for fiscal 2024 and increased its dividend 14%.
TSM stock rose 1.8% to 100.35 last week in a strong bullish reversal. The chip foundry giant has a buy point of 100.70 COP WITH HANDLE. Shares just broke out of the downtrend in the handle on Friday, providing an early entry. Taiwan Semiconductor Corp. on Friday reported a decline in November sales compared to the previous year.
Time the market with IBD’s ETF market strategy
Tesla shares
Tesla shares rose 2.1% to 243.84, the fourth consecutive weekly gain. The electric car giant has been trading tightly over the past few weeks, finding support at the 50-day line. TSLA stock has a double-bottom buy point of 278.98, according to MarketSmith analysis. Investors can use a breakout of the trend line below 250 or the November 29 high of 252.75 as an early entry.
It seems like every active investor is focused on those Tesla stock levels. Is it very clear?
What are you doing now
The stock market rally continues to trade in a sideways pattern, but is very close to the 2023 highs. Some leading stocks are already pulling away, while others are getting closer.
Hopefully, most investors have already invested heavily. You can gradually increase exposure, perhaps taking profits or reducing lags to partially offset new purchases.
If the S&P 500 and Nasdaq break their 2023 highs, it could signal a new point in the market’s rally, strengthening the case for more aggressiveness. Many recent settings will likely come into play in this scenario.
So be prepared. Work on your watch lists. While this article highlighted Tesla and five large chip stocks, leaders emerged from a variety of sectors. So cast a wide net.
Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.
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