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Dow Jones Futures: Market Rally Signals New Run as Nvidia and AI Stocks Hit Buy Zones

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Dow Jones Futures: Market Rally Signals New Run as Nvidia and AI Stocks Hit Buy Zones

Dow Jones futures rose after hours, along with S&P 500 futures and Nasdaq futures. JPMorgan Chase (JPM), Wells Fargo (WFC) And Citi Group (c) report early Friday.




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The stock market generally rallied as investors shrugged off March’s mixed PPI inflation report following Wednesday’s high CPI inflation.

The Nasdaq recorded a close record Nvidia (NVDA) led again and gave a buy signal after Wednesday’s bullish rebound.

Fellow AI chip and hardware stocks Broadcom (AVGO), Astera Labs (ALAB), Arista Networks (A NET) And Super microcomputer (SMCI) also had strong sessions. In the software field Data hound (DDO) ensured early participation while Microsoft (MSFT) rose higher in a buy range.

Thursday offered opportunities to make some purchases, but doesn’t increase exposure quickly. This could be the start of a new run, but it could be a false signal. The indexes, even the Nasdaq, are still in a sideways pattern.

Nvidia stock is on IBD rankings. Nvidia, Microsoft and Broadcom stocks are listed on SwingTrader. Microsoft stock is listed at IBD Long-Term Leaders. Nvidia, Microsoft, Citigroup and Arista stocks are on the list IBD50. Nvidia, Datadog, Broadcom, Arista, Networks and Super Micro stocks are in attendance IBD Bigcap 20.

Microsoft was the IBD stock of the day on Thursday.

Dow Jones futures today

Dow Jones futures rose 0.1% versus fair value. S&P 500 futures and Nasdaq 100 futures rose about 0.1%.

Remember, overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading during the next regular stock market session.


Join IBD experts as they analyze leading stocks and the market rally on IBD Live


Bank income

Early Friday, JPMorgan, Wells Fargo, Citigroup and Black rock (BLK) report, boosting bank profits.

JPMorgan shares, Wells Fargo and Citigroup are finding support around their 21-day lines after strong advances. Wells Fargo stock, approaching a 10-week line test, has a tight five-week entry at 58.44.

BlackRock shares fall and lose sight of the 50-day line.

Stock market rally

The stock market rally recovered on Thursday, relieved that the PPI inflation report was not worse. Investors flocked to AI stocks.

The Dow Jones Industrial Average closed fractionally lower in stock market trading on Thursday, after hitting its lowest intraday level in almost two months. The S&P 500 index climbed 0.7%, back above the 21-day mark. The Nasdaq composite rose 1.7% to a record close.

Once again, Nvidia led the Nasdaq and the S&P 500, both of which recovered from their 10-week lines this week.

In addition to the other AI plays discussed in this article, Google is older Alphabet (GOOGL) And Amazon.com (AMZN) rose 2.1% and 1.7% respectively, both to new highs and close to a $2 trillion market cap. Apple (AAPL) recovered from its 2024 low, up 4.3%, after JPMorgan talked about an AI-powered iPhone expected this fall.

But while mega caps and AI plays shone, volume on both exchanges was significantly lighter than Wednesday. Market breadth was positive, but moderate given the Nasdaq’s gains.

The small-cap Russell 2000 climbed 0.7% to just above the 50-day line.

The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.1% after falling intraday to the 10-week line.

The first Trust Nasdaq 100 equal-weighted index ETF (QQEW) rose 1%, lagging the Nasdaq 100’s 1.6% gain, but just regained the 50-day mark.

The Nasdaq composite managed to break a trendline as it closed at a record. It is still within the ugly downward reversal of April 4. If we get above that level, and the March 21 intraday peak, it would be a decisive indication of a positive trend.

Ideally, this would coincide with broader market participation.

US crude oil prices fell 1.4% to $85.02 per barrel.

Ten-year government bond yields rose 2 basis points to 4.575%, a five-month high and up 20 basis points for the week.

ETFs

Of the growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) advanced 0.7%, with Microsoft shares taking the No. 1 position. The VanEck Vectors Semiconductor ETF (SMH) rose 2.3%, with Nvidia the No. 1 component and Broadcom stock a key member.

Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) climbed 1.5% and ARK Genomics ETF (ARKG) rose by 0.5%.

SPDR S&P Metals & Mining ETF (XME) rose by 0.35%. The SPDR S&P Homebuilders ETF (XHB) advanced 0.4%. The Energy Select SPDR ETF (XLE) fell 0.2% and the Health Care Select Sector SPDR Fund (XLV) fell by 0.4%.

The Industrial Select Sector SPDR fund (XLI) rose by 0.1%. The Financial Select SPDR ETF (XLF) fell 0.6%, with JPMorgan, Wells Fargo and Citigroup shares all having notable holdings.


Time the market with IBD’s ETF market strategy


Nvidia stock

Nvidia shares rose 4.1% to 906.16, breaking above the 21-day line and breaking a brief downtrend. That offered an early entry, a day after a bullish recovery from the 10-week line. NVDA stock will have a flat base after Friday’s close with a 974 buy point.

Raymond James raised his price target for Nvidia from 850 to 1,100 on Thursday.

Other AI Stocks

Shares of Broadcom rose 4.5% to 1,382.56, bouncing off the 21-day and 10-week lines to the highest closing price in a month. The chip and software giant is on track for a new consolidation after Friday. Investors could use the April 4 high of 1,403.28 as a buying point.

Astera Labs rose 6% to 75.59, clearing key resistance at the 75 level and providing a first-ever buy signal. The AI ​​networking chipmaker, which went public in March, has an IPO base with an official buy point of 95.21. As a brand new IPO, ALAB shares are highly volatile.

Super Micro shares rose 3.2% to 937.28, bouncing off the 50-day line on light volume. Investors could use that as a place to start a position. Ideally, SMCI stock would regain its 21-day line and break a downtrend line, currently around the 1,000 level. This is a volatile stock.

Arista Networks shares rose 2.9% to 296.58, back above the 21-day mark and a flat-base buy point of 292.66. Market wave. The shares have been trading around that date for a few weeks.

Datadog shares fell 4% to 130.80, closing above the 50-day line for the first time since early March. That provided early access to a flat base-base-on-base pattern.

Shares of Microsoft rose 1.1% to 427.93, bouncing off the 21-day line and clearing some short-term levels.

On Thursday, Morgan Stanley raised its price target to 520 from 465, citing the Dow tech titan’s generative AI leadership. The shares are within a range of 420.86 buy points after a short consolidation approved in mid-March. MSFT stock could be working on a three-week tight pattern, with a potential entry at 430.82.

Microsoft reports earnings results on April 23, with major consequences for Nvidia, Arista and the entire technology sector.

What to do now

There were encouraging signs on Thursday. Perhaps the market rally is starting to turn the corner and start a new leg higher. Or this could be another fake head.

Investors could and perhaps should have nibbled on a number of names on Thursday, given the strength of the Nasdaq and leading stocks like Nvidia.

But be careful not to get too excited and aggressively increase exposure. Be prepared to pull back if Thursday’s gains don’t hold.

Whether or not you took action on Thursday, you may want to wait until the Nasdaq reaches an all-time intraday high before making any new purchases. Better overall width would be a big plus.

It’s a time to get involved and keep your watchlists up to date. There are a lot of interesting stocks emerging, some of which look useful.

Read The Big Picture every day to stay informed about market direction and the most important stocks and sectors.

Follow Ed Carson on Threads at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.

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