New York, NY – Dow Jones futures saw a slight increase early Friday, as did S&P 500 futures and Nasdaq futures. The stock market had a mixed day Thursday with the S&P 500 briefly surpassing the 5,500 mark for the first time, but many stocks retreated. Nvidia stock reversed lower after approaching extreme technical levels, while other AI chip leaders like Broadcom, Micron Technology, Taiwan Semiconductor, and Arm Holdings also saw declines after recent gains. However, Advanced Micro Devices had a strong performance on Thursday.
Additionally, AI server makers Super Micro Computer and Dell Technologies initially saw gains following a comment from Elon Musk but later erased those gains. Meta Platforms now has a handle, providing a lower buy point for investors. On the other hand, Chipotle Mexican Grill experienced a decline and fell back into a short consolidation.
In futures trading, Dow Jones was slightly above fair value, while S&P 500 futures and Nasdaq 100 futures also showed increases. The 10-year Treasury yield saw a slight rise to 4.26%. It is important to note that overnight movements in futures markets may not necessarily reflect actual trading in the regular stock market session.
The stock market rally on Thursday saw the Dow Jones Industrial Average rise by 0.8%, rebounding from the 50-day line and surpassing recent highs. The S&P 500 index, however, decreased by 0.25%, while the Nasdaq composite fell by 0.8%. The small-cap Russell 2000 also declined by 0.4% after facing resistance at the 50-day line.
In terms of ETFs, several showed losses including the Innovator IBD 50 ETF, iShares Expanded Tech-Software Sector ETF, and the VanEck Vectors Semiconductor ETF. Nvidia stock, being a dominant holding in the Semiconductor ETF, experienced a decline as well.
Furthermore, various AI chip plays in the market also faced challenges. ARM stock fell below its buy point, while Broadcom, Taiwan Semiconductor, and Micron Technology stocks all saw declines. On the positive side, AMD stock rebounded and showed strength. Dell and Super Micro, despite initial gains from an announcement by Elon Musk, later saw decreases in share prices, erasing some gains. Meta stock, on the other hand, showed slight improvement and has a new buy point.
Chipotle stock faced a 6.2% decline, erasing gains from a previous winning streak. Investors are advised to closely monitor the stock market rally and have clear sell rules for winning stocks to manage their portfolios effectively. It is essential to stay updated with the market direction and leading stocks by following sources like The Big Picture on a daily basis.