Dow Jones Futures: Market Rally Stalls as Microsoft AI Chip Challenges Nvidia; Tech Giants Plummet

Stock Market Recap: Microsoft Rolls Out AI Chips & President Biden Meets Xi Jinping

Dow Jones futures, S&P 500 futures, and Nasdaq futures fell slightly overnight. Late on guidance, Palo Alto Networks (PANW) and Cisco Systems (CSCO) experienced a dive while Walmart (WMT) and Alibaba (BABA) set the stage for their performances. The stock market rally, despite a broadly powerful gain on Tuesday, ended below Wednesday’s intraday highs. Following a plunge Tuesday, Treasury yields bounced back. President Joe Biden’s meeting with China’s Xi Jinping was held near San Francisco on Wednesday.

Microsoft (MSFT) unveiled an in-house AI chip on Wednesday, designed with Arm Holdings technology. This move will help reduce the company’s dependence on Nvidia (NVDA). The announcement caused movements in the stock market for Advanced Micro Devices (AMD), Super Micro Computer (SMCI), and ARM Holdings. In the EV sector, Tesla (TSLA) rebounded while Li Auto (LI) and BYD (BYDDF) flashed buy signals.

Particular stocks to watch include PANW, CSCO, MSFT, and LI, which were affected by following Wednesday’s events. The market’s next regular stock session might translate into overnight actions in Dow futures and elsewhere. The Dow Jones futures lost 0.1% against fair value, S&P 500 futures fell 0.2%, and Nasdaq 100 futures were down 0.25%. As a Dow Jones, S&P 500, and Nasdaq 100 member, Cisco Systems’ performance affects these indices. Furthermore, PANW stock is an S&P 500 and Nasdaq 100 member, which also impacts these indices.

The stock market made remarkable progress on Wednesday, with the Dow Jones Industrial Average rising 0.5%, the S&P 500 index climbing nearly 0.2%, and the Nasdaq composite eking out a 0.1% gain. Meanwhile, the Nasdaq 100 came just a hair’s breadth from July’s 52-week high, and the Russell 2000 rose 0.2%. Crude oil prices dropped and the 10-year Treasury yield rose, although growth ETFs fluctuated but maintained gains in Wednesday’s trading.

Microsoft’s AI technology announcements led to significant movement in MSFT, Nvidia, and AMD stock, amongst others. Tesla stock also experienced a rebound amid buy signals and favorable earnings. Investors are advised to maintain watchlists, cast a wide net across various sectors, and stay updated with the market direction and leading stocks and sectors. It’s crucial to use IBD tools for in-depth stock market analysis and to efficiently manage stock trades.


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