Embarking on a dynamic week, the Dow Jones Industrial Average encountered a brief dip of over 150 points, spurred by the remarkable upswing in Nvidia stock reaching unprecedented highs. Simultaneously, Super Micro Computer (SMCI), a front-runner in the artificial intelligence stocks arena, generated buzz as it soared on news of its imminent inclusion in the esteemed S&P 500.
Insights into Dow Jones Industrial Average and Key Indices:
The Dow Jones Industrial Average observed a marginal 0.3% dip in morning trading, mirrored by a 0.1% drop in the S&P 500. The tech-focused Nasdaq composite also experienced a slight slip of 0.15% following the opening bell.
Spotlight on Exchange Traded Funds (ETFs):
Examining exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) witnessed a 0.2% dip, while the SPDR S&P 500 ETF (SPY) fell by 0.3%.
Treasury Yield and Oil Price Movements:
The 10-year Treasury yield inched higher to 4.23%. Meanwhile, oil prices, after last week’s gains, took a pause with West Texas Intermediate futures climbing 0.3%, settling around $80.20 a barrel.
Stock Market Today: Nvidia and Super Micro Take Center Stage
Nvidia’s Remarkable Rally:
Nvidia (NVDA), the AI powerhouse, demonstrated its resilience with a morning rally of 3.9%, reaching record highs. The stock now stands over 60% above its flat base’s 505.48 entry, solidifying its position as an IBD Leaderboard stock.
Super Micro’s Impressive Surge:
Super Micro (SMCI) stole the limelight, surging more than 22% on Monday morning. This surge was fueled by the announcement that the company’s stocks would join the illustrious S&P 500, replacing Whirlpool (WHR) and Zions Bancorp (ZION).
Economic Outlook and Earnings Movement:
As the week unfolds, key events on the economic calendar include Fed Chair Jerome Powell’s much-anticipated speech and the release of the February jobs report on Friday.
Highlights in Earnings:
Monday’s noteworthy earnings movers included Sea Limited (SE), whose shares surged over 11% in early action. Looking ahead, the technology sector is gearing up for a bustling earnings week with companies like GitLab (GTLB), CrowdStrike (CRWD), Broadcom (AVGO), MongoDB (MDB), and Samsara (IOT) set to unveil their results.
Reflecting on Last Week’s Performance:
Nasdaq’s Milestone:
Last Friday, the Nasdaq composite achieved an all-time high, concluding the session with a noteworthy 1.1% gain. Surpassing its November 2021 high of 16,212, this milestone signals a robust market.
Dow Jones and S&P 500 Recap:
Despite a 0.2% daily gain, the Dow Jones Industrial Average concluded the week 0.1% lower. In contrast, the S&P 500 rose by 0.8%, closing above the 5,100 mark for the first time.
Understanding the Big Picture:
In the context of the ongoing stock market rally, investors are encouraged to delve into IBD’s The Big Picture column. This discussion emphasizes the latest surge in the stock market, highlighting the upcoming testimony from Federal Reserve Chair Jerome Powell and the significance of the latest jobs report for investors.
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