New York City, NY – After hours trading showed little movement in Dow Jones futures, as well as in S&P 500 futures and Nasdaq futures.
The stock market rallied despite a core CPI inflation reading on Tuesday, with Oracle and Nvidia leading the charge. Big-tech companies propelled the S&P 500 to a record closing high, although market breadth was weak.
Several companies, including ServiceNow, Shockwave Medical, Archrock, Symbotic, and Microsoft, signaled buy opportunities on Tuesday, at least intraday. Investors had a chance to make some incremental buys on Tuesday, but the window for such opportunities may close quickly.
Dollar Tree and Williams-Sonoma are set to make appearances early on Wednesday, offering potential trading opportunities.
While Nvidia stock and ServiceNow are on IBD Leaderboard, ServiceNow stock is also on SwingTrader. Microsoft stock has a spot on IBD Long-Term Leaders, while Nvidia, Symbotic, and Shockwave stock are part of the IBD 50. Archrock was highlighted as the IBD Stock Of The Day on Tuesday.
The Dow Jones futures displayed minimal change compared to fair value, with S&P 500 futures flat and Nasdaq 100 futures showing little movement. It’s worth noting that overnight futures activity does not always translate to market performance during regular trading hours.
The stock market showed strength despite high CPI data, with Nvidia and Oracle stocks leading a tech rebound. The major indexes all saw gains, with the Dow Jones Industrial Average climbing 0.6%, the S&P 500 index rising 1.1%, and the Nasdaq composite jumping 1.5%.
Despite the market’s positive performance, decliners slightly outnumbered advancers. The small-cap Russell 2000 experienced a slight decline, while ETFs like the Invesco S&P 500 Equal Weight ETF and the First Trust Nasdaq 100 Equal Weighted Index ETF saw varying levels of success.
Various sectors, including AI chip names, big-cap software companies like ServiceNow and Microsoft, and medical products and energy services firms like Archrock, showed promise in the market. However, some sectors were notably extended, like AI chip names led by Nvidia.
Investors were cautioned to be mindful of the market’s extended status, as new bases might struggle to form if a substantial pullback occurs. It is crucial for investors to diversify their watchlists beyond popular names to identify emerging opportunities before they become overextended.
As the market continues to show resilience, it’s important for investors to stay informed on market trends and leading sectors. Keeping an eye on emerging opportunities and staying flexible in trading strategies can help navigate the current market landscape.