New York City, New York – Dow Jones futures showed little movement overnight, mirroring the trend in S&P 500 futures and Nasdaq futures. The stock market rallied once again on Thursday, with the Nasdaq leading the charge following the postelection boost linked to former President Donald Trump. Stocks saw slight gains as the Federal Reserve announced a cut in its key rate, coupled with Fed chief Jerome Powell hinting at further easing measures.
Tech giant Nvidia saw a modest rise to new highs, while fellow AI chip companies Broadcom and Taiwan Semiconductor also showed signs of growth. Earnings reports from companies like Arista Networks, Cloudflare, and Fortinet after the market closed added to the market’s movement.
Powell addressed the Fed’s key rate cut, stating that the job market was gradually cooling. He emphasized that the election results would not affect the monetary policy outlook. The odds of a rate cut in December increased following the Fed meeting and Powell’s statements.
The stock market rally continued on Thursday, especially favoring big-cap tech companies. Major indexes experienced slight improvements after the Fed announcement, with the Nasdaq and S&P 500 reaching new all-time highs. The Dow Jones Industrial Average saw minimal movement following Wednesday’s significant gains, while the Nasdaq composite jumped due to the performance of tech giants like Nvidia and Meta Platforms.
Several companies, including AppLovin and Mercadolibre, witnessed notable movements following earnings reports. The 10-year Treasury yield declined after hitting a four-month high, and ETFs such as the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF saw positive growth.
Late earnings movers like Doximity and Toast stood out, alongside companies like Expedia, whose stocks rose. On the other hand, Sweetgreen and Cloudflare faced declines. Investors were advised to be cautious of buying stocks with upcoming earnings reports and instead focus on reviewing their portfolios.
The current market condition presents opportunities for incremental buys and the evaluation of laggards in portfolios. Staying updated on market trends, leading stocks, and sectors is crucial for making informed investment decisions. Keeping an eye on exit strategies and continuing to build watchlists is key to navigating the evolving market landscape.