Dow Jones futures were little changed Sunday night, along with S&P 500 futures and Nasdaq futures.
X
The stock market continues to rise, with the Nasdaq Composite Index hitting a new all-time high and joining the S&P 500.
taiwan semiconductor manufacturing (TSM), monolithic power system (MPWR), microsoft (MSFT), Palantir Technologies (PLTR), deckers brand (deck), Eli Lilly (Lily), reasonable (call) and Uber Technologies (Uber) is a hot stock. Both are market rally leaders and have been consolidating for weeks, providing new buying opportunities.
Some of these are AI plays. Nvidia (NVDA) and Taiwan Semi, a chip maker riding the wave of cutting-edge semiconductors.
However, the Nasdaq and S&P 500 were extended again. After some time, investors may become cautious again.
super microcomputer (SMCI) and Deckers jumped on the news Friday night that the market leader would be joining the S&P 500.
Uber has stock IBD Leaderboard. Microsoft, Palantir, Eli Lilly, and Taiwan Semiconductor stocks are listed on SwingTrader. Microsoft stock is on his IBD long-term leaders, and Monolithic Power is also on his long-term leaders watchlist.Palantir stock is IBD50.Deckers stock, Palantir, Super Micro, Deckers, Uber Technologies are on the rise IBD big cap 20.
The video embedded in this article highlights this week’s market trends and analyzes Taiwanese semiconductor stocks. tide (TDW) and Confluence (CFLT).
Dow Jones futures today
Dow Jones futures fell 0.15% to fair value. S&P 500 futures fell 0.1%. Nasdaq 100 futures rose 0.1%.
The 10-year US Treasury yield rose to 4.19%.
Crude oil futures are little changed. OPEC+ agreed on Sunday to extend current production cuts until June, as expected.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
The stock market’s rally over the past week was generally higher, led by tech and small-cap stocks.
In stock market trading last week, the Dow Jones Industrial Average fell 0.1%, with Apple shares united health (UNH) acts as a drag. It is still close to its all-time high. The S&P 500 rose 0.9% on Friday, hitting a record high. The Nasdaq Composite rose 1.7% for the week, hitting a record high on Friday for the first time since November 2021.
The small-cap Russell 2000 rose nearly 3%, just topping a 22-month high set in December.
The Nasdaq has been on hiatus for several days, actually since Feb. 12, with a number of stocks creating new buying opportunities, including Taiwan Semiconductor and Microsoft.
However, after a strong end to the week, the Nasdaq is now 5.8% above its 50-day moving average, showing some growth once again. The S&P 500 is 5.1% above that level. It is true that further extensions are possible, but the risk of a pullback will continue to rise.
The 10-year Treasury yield fell 8 basis points to 4.18%, retreating from its 2024 high.
U.S. crude oil futures rose 4.55% last week to $79.97 a barrel, with intraday prices on Friday above $80 for the first time since November.
Bullishness: The secret reason the Fed is delaying rate cuts
ETF
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) rebounded by 2.6%. Microsoft has a huge holding in IGV, and Palantir is also included in the ETF. VanEck Vectors Semiconductor ETF (SMH) became a component of both Taiwan Semiconductor Corporation and Monolithic Power, and soared 5.5% to a new all-time high.
SPDR S&P Metals & Mining ETF (XME) rose 2.2% last week. Global X US Infrastructure Development ETF (pave) rose 2.35%, extending its weekly winning streak and setting another all-time high. US Global Jets ETF (jets) fell 0.2%. SPDR S&P Home Builders ETF (XHB) rose 2.9%. Energy Select SPDR ETF (XLE) rose 1.4%, the highest in four months.
Healthcare Select Sector SPDR Fund (XLV) fell 1%, but rebounded from its 21-day line on Friday. LLY stock is his big holding in XLV. Industrial Select Sector SPDR Fund (XLI) rose 1.1% for the week, marking a new all-time high.
Financial Select SPDR ETF (XLF) fell 1 cent to close near a two-year high.
ARK Innovation ETF (Arkku) rebounded 5.6% last week, with the ARK Genomics ETF (arcg) rose 4.7%.
Timing the Market with IBD’s ETF Market Strategy
Up-and-coming stock
Taiwan Semiconductor Corp. jumped 4.1% to 133.90 on Friday, briefly ending short-term consolidation after a strong performance following its Jan. 18 results. TSM stock could be a buy from the short trend line or the February 27 high of 131.97. Taiwan Semiconductor, the world’s largest chip foundry, makes semiconductors for Nvidia. apple (AAPL) and many others. Taiwan Semi’s revenue is expected to recover in 2024, driven by AI chips. February sales are scheduled to be reported on March 8th.
Monolithic Power stock rose 3.3% to 743.75 on Friday, extending its rebound from Thursday’s 21-day line and clearing a short downtrend line. Monolithic makes data center chips and is riding the AI wave, but it’s not competing with Nvidia. The company has maintained its stock price for three weeks due to the widening earnings gap.
Microsoft stock has strengthened since hitting an all-time high of 420.82 on February 9th, thanks to solid performance from a flat-based, four-base formation. The stock price found support at the 21-day line late last week and rebounded. MSFT stock is just above the short trend line, suggesting an entry. Investors may also take advantage of the short-term high of 415.86 on February 22nd.
Palantir stock rose 8.5% last week to 24.93 shares, down slightly from its two-year high hit on Friday. PLTR stock is performing solidly, slightly above historical standards, following strong earnings performance in early February. Clearing recent actions may result in purchases or additional entries being offered.
PLTR stock fell late Friday, likely disappointed that it will not join the S&P 500.
Deckers stock broke out of its short-term consolidation on Friday, rising 2.6% for the week to 903.29. This could at least provide additional entries for existing holders. Deck stock rose late Friday on news that Deckers will join the S&P 500 index on March 18th.
Eli Lilly shares jumped 3.8% on Friday, hitting a new closing high after Bank of America raised its price target to 1,000. Stock prices fell earlier this week. Viking Therapeutics (VKTX) soared after positive trial results for a weight loss drug. An existing holder can add some of his LLY shares here.
Coherent stock rose 6.7% to 63.63 on Friday, breaking the downtrend of short-term consolidation due to large earnings differentials and making an entry. Investors could view the recent action as a high handle to very deep fundamentals dating back to June 2023, or a handle to a large consolidation dating back to April 2022. Revenue from the industrial laser business has been depressed for several quarters, but is expected to recover. soon.
Uber stock rose 3.6% on the week to 81.03, close to its Feb. 15 high of 81.86. Completing that level may offer add-on entry, but longer pauses or withdrawals are a plus.
Catch the next big winning stock with MarketSurge
what to do now
This is a strong rally in the market, so investors should ideally invest heavily. But over the past few weeks, the market has stopped for a few days, gone up for a few days, then paused and then briefly dropped again.
This start-stop action has created some buying opportunities, but they usually don’t last long. Therefore, investors should be patient but ready to act quickly and buy as close to the entry point as possible.
This requires a lot of work in advance, including running screens, analyzing charts, and preparing focus lists.
Be sure to cast a wide net. If he already owns Nvidia, Advanced Micro Devices (AMD), do you want to add more AI chip plays like Taiwan Cicada, or do you want to add more AI plays in general?
While this article covered the resurgence of leaders in the AI-themed market rally, investors should also keep an eye on emerging stocks in other sectors that are starting now, such as Tidewater. . It may have a little less relative strength, but it provides a true base.
If you took advantage of a recent buying opportunity quickly, you must also be nimble in getting out of it. Make sure you have a solid exit strategy.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson on the thread. @edcarson1971 and on X/Twitter @IBD_ECarson The latest information on the stock market, etc.
You’ll probably also like:
The best growth stocks to buy and watch
Check out the full story from Investor’s Business Daily
Watch IBD Live, where market experts identify the top stocks each morning.
ServiceNow Leads 5 Stocks Near Buy Points
Super Micro, Deckers joins S&P 500 index
