Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures, as the February jobs report loomed on Friday.
X
Stock market gains led to strong trading, with the S&P 500 and Nasdaq hitting new highs on Thursday.
Nvidia (NVDA) soared again, the widest in decades. The chips are generally hot. taiwan semiconductor (TSM) broadcom (AVGO) and marvel technology (MRVL) was also implemented and expanded.but monolithic power (MPWR) Cleared short-term consolidation above previous benchmarks. microchip technology (MCHP) overcame several early entries to make an official breakout.
Several other stocks issued buy signals on Thursday.
However, the market’s bull run already appears to have been extended once again. Investors should be cautious.
Main income
Broadcom and Marvell released their financial results after the market closed. costco wholesale (Fee), gap (GPS) and software manufacturers Mongo DB (MDB), samsara (IoT) and docusign (documents).
Winner: Samsara stock soared and showed a gap from base. DocuSign stock is expected to jump above the 50-day line and move higher toward a consolidation point. The gap has steadily increased.
Losers: Marvell retreated solidly, and so did MongoDB, both based on weak guidance. Costco stock fell slightly due to short selling. Broadcom stock fell slightly.
Taiwan Semiconductor reported February sales early Friday morning, which will be important for major customers such as Nvidia and chip equipment makers. TSM stock has soared 11.4% so far this week after breaking short-term interest on March 1st.
Nvidia stock is on IBD Leaderboard. Monolithic Power is on the IBD Long Term Reader Watchlist.
job report
The Department of Labor will release February employment statistics at 8:30 a.m. ET. Economists expect nonfarm payrolls to rise by 190,000 jobs, a sharp decline from January’s 353,000. The unemployment rate is expected to remain stable at 3.7%.
The strong jobs report could cause the Fed to reduce its rate cut prospects at its March 20 meeting.
Dow Jones futures today
Dow Jones futures traded slightly above fair value. S&P500 futures rose slightly. Nasdaq 100 futures fell 0.2%. Broadcom and Marvell are members of the Nasdaq 100.
It is certain that Dow futures and US Treasury yields will fluctuate depending on the employment report.
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
Thursday’s stock market rally was strong and broad-based.
The Dow Jones Industrial Average rose 0.3% in stock market trading on Thursday. The S&P 500 Index rose 1% and the Nasdaq Composite Index rose 1.5%, both hitting new record highs. The small-cap Russell 2000 rose 0.8%, hitting a 23-month intraday high.
When it comes to technology, chips are clearly in the lead. Many software names have been victimized in the past few weeks, but some may be set up again. Manhattan Associates (man) Cleared a short consolidation.
On the other hand, the broader housing, construction and infrastructure sectors look solid. Manufacturers of medical products are also appearing one after another. edwards life sciences (E.W.) occurred on the following Thursday dexcomMr. Miss(DXCM) forward.
Some trucking stocks are doing well; arc vest (ARCB) clear short integration. ArcBest is his IBD stock of the day.
Many bank stocks are giving buy signals and we are also seeing some energy plays.
However, the Nasdaq has already expanded slightly again and is 5.1% above its 50-day moving average. Many of the congregation’s key leaders are severely stretched. It is understandable that market sentiment is becoming extremely bullish, but it is concerning.
These factors raise the risk of a pullback in the market in time for Friday’s jobs report. So far, these backlashes have ultimately been modest and often very short-lived, but at some point that will change. Many major stocks could plummet in this scenario.
US crude oil prices fell 0.25% to $78.93 per barrel.
The yield on the 10-year U.S. Treasury note fell 1 basis point to 4.09%, but still off an earlier low of 4.05%.
ETF
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) rose 1.2%, but still recovering from Tuesday’s 3.8% decline. VanEck Vectors Semiconductor ETF (SMH) is up 3.45% and is up 33.9% so far this year. Nvidia stock is SMH’s largest holding so far, with Taiwan Semiconductor, Broadcom, Monolithic Power, Microchip Tech and Marvell also making up the holdings.
The ARK Innovation ETF (which reflects stocks with more speculative stories)Arkku) rose 1.15%. ARK Genomics (arcg) increased to 1.1%.
SPDR S&P Metals & Mining ETF (XME) rose 2.6%, while the Global X US Infrastructure Development ETF (pave) rose 1.2%. SPDR S&P Home Builders (XHB) rose 1.6%.
Energy Select SPDR ETF (XLE) rose 0.85%, while the Healthcare Select Sector SPDR Fund (XLV) rose 0.5%. Industrial Select Sector SPDR Fund (XLI) rose 0.8%.
Financial Select SPDR ETF (XLF) fell 0.15%. SPDR S&P Regional Banking ETF (KRE) rose 0.1%.
Timing the Market with IBD’s ETF Market Strategy
nvidia stock
Nvidia jumped 4.5% to 926.69 on Thursday after Mizuho raised its price target to 1,000. The stock is up 12.6% so far this week. This would be the biggest gain in a nine-week winning streak dating back to early January.
The AI chip leader is up 86.9% in 2024 and is now valued at $2.32 trillion.
Nvidia stock is currently trading 41.9% above its 50-day price. This expanded even further than the 2023 plans and coronavirus gatherings. In fact, this is the largest increase from the 50-day line at the closing price since June 2003.
This increases the risk of a significant decline or correction. That would likely result in significant losses for various semiconductor stocks, other AI-related businesses, and perhaps the broader market.
However, a backlash is not inevitable.
On May 30, 2023, NVDA stock closed 40.4% above its 50-day line with a large gap in earnings. The stock price continued to rise at a moderate pace over the next few months, before holding steady for the rest of the year.
Why this IBD tool simplifies your search for top stocks
what to do now
The stock market has rebounded from Tuesday’s decline and is showing impressive momentum. While the pause and rapid recovery have limited buying opportunities, investors with large exposures have benefited.
The Nasdaq, especially Nvidia, is up and sentiment is nearing euphoria. So it’s time to be careful again with new purchases.
Depending on your exposure, concentration level and investment style, you may consider taking partial profits with some extended leaders. In either case, you need to have a solid exit strategy in place.
Keep working on your watchlist and look for new setups.
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 may also like:
Catch the next big winning stock with MarketSurge
Want to make quick profits and avoid big losses? Try SwingTrader
The best growth stocks to buy and watch
IBD Digital: Get access to IBD’s premium stock lists, tools and analysis now
