Jim Cramer explained how Nvidia's significant gains can positively impact other stocks, highlighting its influence on the S&P 500 and Nasdaq Composite. Nvidia's market cap briefly hit $3 trillion, and its success has boosted stocks of companies like CrowdStrike, ServiceNow, and those involved in data center construction. Cramer emphasized Nvidia's outsized influence on the market, likening its impact to a bowling strike that consistently hits the head pin.
Stock futures remained flat after the S&P 500 and Nasdaq Composite extended their losing streak, with tech stocks struggling and major indexes closing below their 50-day moving averages. Equifax and Las Vegas Sands saw declines in extended trading, while Nvidia's drop contributed to the market pullback. Analysts believe a strong earnings season could help support equities against higher interest rates, but caution that there is little room for error due to re-rating.
Stock futures slipped after the Nasdaq Composite retreated from its record high, with Dow Jones Industrial Average futures dropping 0.1% and S&P 500 futures inching down 0.1%. Large cap tech companies faced mixed performance, with chipmakers Nvidia and Super Micro Computer gaining, while Apple and Tesla experienced losses. Utilities sector outperformed, led by Dominion Energy and AES, while Constellation Energy showed considerable strength. Gold's ascent lifted miners ETF to its best day in 2024, and Renaissance Macro Research advised investors to reconsider Apple. JPMorgan analyst sees better times ahead for "best in class" retail brands, and investors are looking toward earnings reports from Target, Nordstrom, and Box.
U.S. stock futures were relatively unchanged after the Nasdaq Composite reached a record high, with the S&P 500 and Nasdaq-100 futures showing marginal movements. The recent market rally has been driven by enthusiasm over artificial intelligence, with the S&P 500 and Nasdaq posting their seventh weekly gains in eight. Investors are now focusing on inflation, with Federal Reserve Chair Jerome Powell's updates and key economic data releases expected to provide insight into the future direction of interest rates. Additionally, Macy's is facing a raised buyout bid of nearly $1 billion from Arkhouse Management and Brigade Capital Management.
The "Magnificent Seven" stocks, including Nvidia, Meta Platforms, Tesla, Amazon, Alphabet, Microsoft, and Apple, were top performers in the Nasdaq Composite in 2023, with gains ranging from 48% to 239%. Despite these strong performances, certain Wall Street analysts believe that Tesla, Nvidia, and Amazon still have significant upside potential of between 45% and 84% over the coming year. Analysts cite factors such as Tesla's long-term growth prospects, Nvidia's position to benefit from generative AI, and Amazon's strong foundation for future growth driven by AI.
The U.S. stock market has shown profitable returns over the last decade, with the S&P 500 returning 163%, the Dow Jones Industrial Average returning 131%, and the Nasdaq Composite returning 264%. These indexes are widely regarded as benchmarks for the entire U.S. stock market and offer opportunities for investors to gain exposure through index funds. Despite market volatility, historical data suggests that these major U.S. stock market indexes have been profitable investments and are likely to continue to be so in the future.
Stocks traded mostly higher, with the tech sector providing a boost and the Nasdaq Composite turning positive for the year. Notable movers included Humana, Discover, Taiwan Semi, Spirit Airlines, Apple, and M.D.C. Holdings.
The Nasdaq Composite and S&P 500 are showing signs of a new bull market, making it an opportune time to consider investing in the Fidelity Nasdaq Composite ETF, which tracks innovative tech companies. With a historical track record of strong performance, the ETF has the potential to turn monthly investments of $300 into $915,600 over three decades, assuming a 12% annual return. While the fund is heavily concentrated in technology stocks and may experience volatility, its below-average expense ratio of 0.21% makes it an attractive option for growth-focused investors comfortable with market turbulence.
The stock market is experiencing a rocky beginning in 2024, with significant indexes like the S&P 500, Dow Jones, and Nasdaq Composite seeing declines in the first month, challenging the optimism of the January Barometer theory that suggests January's performance can predict the rest of the year's market trend.
The sudden dip in the U.S. stock market on Wednesday has left traders and analysts uncertain about whether it was a one-day event or the start of a significant pullback. Technical analyst Mark Arbeter suggests that many stocks, particularly in the technology sector, are overextended, leaving few attractive options in the near term. While the market had been overbought, there were no bearish momentum divergences or weakening breadth indicators. However, Arbeter notes that a pullback would not be surprising, but based on price and breadth, the bull market appears to have further room to grow.
Stock futures remained flat after the major averages extended their winning streak, with the S&P 500 and Nasdaq Composite reaching new highs. FedEx's stock dropped 9% in after-hours trading due to disappointing earnings and a trimmed revenue outlook. The market's recent rally has fueled confidence, but caution is advised as sentiment becomes frothy. Earnings from General Mills and Micron Technology, as well as consumer confidence data and existing home sales, are expected today.
Stocks continued their rally as investors remained hopeful for interest-rate cuts, with the S&P 500 rising 0.5%, the Nasdaq Composite advancing 0.6%, and the Dow Jones Industrial Average reaching a fourth consecutive record close.
The Dow Jones Industrial Average had its best day since November 2023, while the Nasdaq Composite and S&P 500 saw their biggest gains since April 2023, as investors reacted positively to lower-than-expected consumer inflation data. Market participants are increasingly betting that the Federal Reserve will not raise interest rates further this year, with some even speculating on a rate cut in March 2024. Bond yields fell as stocks rallied, and tech giants Microsoft and Nvidia reached all-time highs. Home Depot shares also surged after beating earnings expectations and narrowing its annual guidance.
Stocks rallied on Tuesday after the release of a softer-than-expected inflation report for October. The tech-heavy Nasdaq Composite led the gains, followed by the S&P 500 and the Dow Jones Industrial Average. Bond yields also dropped significantly. Home Depot's quarterly results showed a smaller decline in same-store sales than anticipated, while attention is focused on the APAC summit where President Joe Biden and Chinese President Xi Jinping are expected to announce an agreement on cracking down on fentanyl manufacturing and export.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite rebounded after a dip caused by a poor Treasury bond auction and indications of higher interest rates. The S&P 500 and Nasdaq ended their longest winning streaks since November 2021. Treasury bond yields eased after a reported ransomware attack against a Chinese bank's U.S. unit. Federal Reserve Chairman Jerome Powell's remarks on inflation and interest rates added to market uncertainty. Consumer sentiment fell for the fourth consecutive month. Shares of Plug Power, Trade Desk, Illumina, and Lions Gate Entertainment were in focus due to company-specific news.
