Dow Jones Futures Lower As Nvidia Earnings & AI Plays Awaited
During Sunday evening trading, Dow Jones futures, S&P 500 futures, and Nasdaq futures all took a dip. The focus is on Nvidia (NVDA) earnings, which will have a significant impact on the stock market rally and a string of artificial intelligence (AI) stocks, including Microsoft (MSFT), Google parent Alphabet (GOOGL), Meta Platforms (META), Palantir Technologies (PLTR), and Super Micro Computer (SMCI). There are also negotiations underway at OpenAI to reinstate CEO Sam Altman, following a dramatic ouster on Friday that has investors, including Microsoft, pushing hard for his return. The OpenAI developments will have far-reaching implications for Microsoft and other AI players in the market. The stock market rally had a strong week, showing resistance to a late-week pause and potentially building a constructive setup for some market leaders.
The Nasdaq is gearing up for a “power trend,” indicating a time for aggressive yet disciplined investment. Outlook for Nvidia, Microsoft, Meta, and Google stocks is positive, with organizations such as IBD Leaderboard and IBD 50 listed as good investment options. NVDA earnings, expected to come out on Tuesday, have the potential to be a significant catalyst driving the market. Join IBD experts as we analyze the weekly market action and discuss NVDA stock, Novo Nordisk (NVO), and MongoDB (MDB).
Dow Jones Futures & Today’s Market Trend
Dow Jones futures dropped slightly over the weekend, compared to fair value. S&P 500 futures experienced a 0.1% loss, while Nasdaq 100 futures fell 0.25%. The 10-year Treasury yield edged up to 4.46%. It’s important to note that overnight futures trading may not necessarily translate into actual stock market trading in the next regular session.
The stock market rally gained ground thanks to Tuesday’s tame inflation report and showed solid gains during the week. The Dow Jones Industrial Average, S&P 500, and Nasdaq composite all surged, with the small-cap Russell 2000 also performing well. Key ETFs showed strong performance last week, indicating broad-based support for the market.
Favorable Market Conditions For Aggressive Investment
The current market conditions leading up to a potential “power trend” indicate a favorable time for aggressive investments and open support for holding stocks for longer periods.ETFs like the iShares Expanded Tech-Software Sector ETF (IGV) and VanEck Vectors Semiconductor ETF (SMH) reached record highs last week, reflecting strong performance by leading stocks in the Nasdaq composite. The market rally has also seen significant movement in other ETFs and sectors, showing a broad-based market resurgence.
Earnings And Big Movers
In the coming week, Nvidia earnings are expected to be a game-changer as analysts predict a significant jump in earnings and revenue. After two strong quarterly reports, the market may be expecting more from Nvidia. This earnings announcement may also shed light on the impact of tighter China export controls.
A reshuffle at AI giant OpenAI has sent shockwaves across the market, with a potential return of ousted CEO Sam Altman creating ripples. Microsoft is backing the move, indicating substantive influence over the AI landscape. This shake-up could tilt the scales in favor of Meta, Google, and other large language models, adding another layer of complexity to the market.
Microsoft, Google, and other related stocks are already showing promising movement, indicating a strong potential for growth in the AI sector. As the market continues to evolve amidst the OpenAI drama, investors can expect a mix of opportunities and challenges in the weeks ahead.
