Dow Jones futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures.
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The stock market rally will open after a powerful session Wednesday, with the Nasdaq and S&P 500 hitting all-time highs. Goldilocks economic reports and strong tech earnings and news fueled gains.
Nvidia (NVDA) kept running to top a $3 trillion market cap and move above Apple (AAPL). Microsoft (MSFT), still boasting the world’s largest valuation, made a solid gain.
Many stocks broke out or flashed buy signals. ASML (ASML) broke out on bullish news, while fellow chip-equipment giants Applied Materials (AMAT) and Lam Research (LRCX) flashed buy signals. Memory-chip giant Micron Technology (MU) reclaimed a buy point.
Dutch Bros (BROS), Meta Platforms (META), Constellation Energy (CEG), Wingstop (WING), Chipotle Mexican Grill (CMG), Netflix (NFLX) and Coinbase Global (COIN) also moved above buy points.
Investors should be taking advantage of the new buying opportunities as the market rally revs up.
After the close Lululemon Athletica (LULU) and Smartsheet (SMAR) jumped on earnings but after long downtrends in 2024.
Nvidia and ASML stock are on IBD Leaderboard. Dutch Bros stock, Chipotle and Constellation Energy are on SwingTrader. Microsoft stock is on the IBD Long-Term Leaders list. Nvidia, Dutch Bros, Netflix and Wingstop stock are on the IBD 50. Nvidia and Netflix stock are on the IBD Big Cap 20. ASML was Wednesday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures fell 0.15% vs. fair value. S&P 500 futures were little changed and Nasdaq 100 futures rose 0.15%. Nvidia stock continued to rise overnight.
The 10-year Treasury yield ticked up to 4.31%.
Crude oil prices rose 1%.
The European Central Bank cut its main interest rates by 25 basis points, as expected. The ECB is moving ahead of the Federal Reserve and the Bank of England.
Remember that premarket action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally showed real strength, led by techs. CrowdStrike (CRWD) jumped and Hewlett Packard Enterprise (HPE) surged on earnings, while ASML fueled chip names along with the still-hot Nvidia stock.
The ISM services index rose more than expected, rebounding into expansion territory after several recent disappointing economic reports. The ISM services employment subindex held below the 50 level, while the ADP jobs report showed softer-than-forecast private-sector hiring.
The Dow Jones Industrial Average advanced 0.25% in Wednesday’s stock market trading, fractionally below the 50-day line. The S&P 500 index gained 1.2% and the Nasdaq composite jumped nearly 2%
The small-cap Russell 2000 leapt 1.5%, retaking the 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) rose 0.6%, back above its 50-day.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) bounced 1.55%, retaking the 50-day and 21-day lines. The Nasdaq 100 jumped 2%, hitting a new high.
Leading stocks thrived Wednesday. Chips and restaurants were well represented, but stocks from several sectors participated.
U.S. crude oil prices rose 1.1% to $74.07 a barrel, snapping a sharp five-session slide.
The 10-year Treasury yield fell nearly five basis points to 4.29%, hitting a two-month low. The yield is down 33 basis points over the past five sessions.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rebounded 2.3%. The VanEck Vectors Semiconductor ETF (SMH) leapt 4.9%. NVDA stock is the No. 1 holding while Micron, ASML, Lam Research and AMAT stock are notable SMH members.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 2.1% and ARK Genomics ETF (ARKG) soared 4.9%. COIN stock is a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) gained 0.9%. S&P Homebuilders ETF (XHB) bounced 2.1%. The Energy Select SPDR ETF (XLE) closed fractionally lower. The Health Care Select Sector SPDR Fund (XLV) rose 0.45%.
The Industrial Select Sector SPDR Fund (XLI) climbed 1%. The Financial Select SPDR ETF (XLF) edged up 0.3%.
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Nvidia Stock
Nvidia stock jumped 5.2% to 1,224.40, hitting yet another record high. Shares are up nearly 29% since Nvidia’s May 22 earnings report. A 10-for-1 stock split will take place after Friday’s close.
Nvidia topped a $3 trillion market cap for the first time, closing Wednesday at $3.061 trillion.
That passed up Apple, which rose for its eighth straight session. Shares edged up 0.8% to 195.87, approaching a 199.62 cup-base buy point. That pushed AAPL stock back above $3 trillion to finish at $3.003 trillion.
Apple will hold its annual Worldwide Developers Conference (WWDC) starting June 10, where the iPhone giant is expected to make its big AI push.
Microsoft stock is still No. 1 with a market cap at $3.151 trillion, but perhaps not for much longer. Microsoft stock did gain 1.9% to 424.01 on Wednesday, rebounding from the 50-day line. Shares aren’t far from a 430.82 flat-base buy point.
Nvidia stock rose nearly 2% early Thursday, pushing higher above $3 trillion.
Stocks In Buy Zones
Chip equipment maker ASML stock gapped up 9.5% to 1,041.34, clearing a 992.88 cup-with-handle buy point. CFO Roger Dassen was upbeat about orders from top customer Taiwan Semiconductor (TSM). Meanwhile, Bloomberg reported that ASML would ship its latest high-end chip equipment to Taiwan Semi and Samsung Electronics.
Applied Materials stock rallied 5.25% to 223.37, back above a 214.91 flat-base buy point. AMAT stock found support at the 10-week line earlier in the week.
Lam Research stock popped 5.3% to 971.72, rebounding above the 50-day line and breaking a short trendline of what could be described as a handle. That offered an early entry. LRCX stock has a 1,004.29 flat-base buy point, but the May 22 high of 992.66 is another trigger point.
Micron stock gained 5.6% to 133.71, back above a 130.54 cup-base buy point. Shares nearly tested its 50-day on May 31, but closed just above the 21-day line that day.
META stock gapped 3.8% higher to 495.06, retaking the 50-day line after hitting resistance there. That could be a place to start a position. Meta stock has an official buy point of 531.49.
Dutch Bros stock shot up 7.7% to 38.39, racing past a 36.17 cup-base buy point. BROS stock is now extended but could pull back. Shares of the coffee and energy drinks chain initially broke out on May 15 amid a big post-earnings move, but soon reversed down to the 21-day line.
Wingstop stock gained 6.3% to 402.44, rebounding from the 50-day, breaking a downtrend and ultimately clearing a short consolidation just above a prior flat base.
Chipotle stock climbed 2.2% to 3,147.98, rebounding from the 50-day and breaking a short downtrend. CMG stock is on track to have a flat base with a 3,260 buy point after this week. Shareholders on Thursday should be OK a 50-for-1 stock split, which would take place later in the month.
Constellation Energy stock bounced 3.05% to 209.33 after finding support Tuesday at the 50-day and a prior 198.83 flat-base buy point. CEG stock, like many utilities, is seen as an AI play as AI data centers have huge power needs.
Netflix stock climbed 2.95% to 650.27, bouncing from near the 10-week line to reclaim a 639 cup-base buy point, according to MarketSurge. Shares had drifted lower for five sessions, closing recently around the 21-day line.
Coinbase stock advanced 2.95% to 251.40, clearing short-term highs and still relatively close to the 50-day line. That offers an early entry in the cryptocurrency exchange, which has a 283.48 cup-base buy point. COIN stock and other crypto stocks are on the upswing as the bitcoin price pushes above $71,000.
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Market Rally Analysis
The market rally is showing clear renewed strength.
Wednesday was definitely a time to be adding exposure. This is why it’s key to have watchlists up to date, casting both a wide net and having a special focus list. You want to be prepared for days like Wednesday, not scrambling to react
Investors can keep adding positions, depending on their exposure levels, if the market continues to act well.
Friday’s job report will be important, given Wednesday’s econ-driven gains.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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