After hours, Dow Jones futures, S&P 500 futures, and Nasdaq futures all saw a slight decline. The stock market rally experienced losses due to various factors. ASML, a chip-equipment giant, reported weak guidance leading to a decline in Nvidia and other chip and AI plays. Additionally, plunging oil prices impacted energy stocks, while UnitedHealth Group saw a dive in its stock price due to weak guidance. However, small caps and some sectors demonstrated strength or resilience during this time.
Nvidia stock managed to close just above a buy point, while other AI chip plays such as Broadcom and Taiwan Semiconductor also held near entries. It’s crucial for investors to have sound rules that work for them and to stick to them consistently. Being on IBD Leaderboard, SwingTrader, or the IBD 50 can provide valuable insights for investors.
Earnings reports from United Airlines and Interactive Brokers were released after the close. United Airlines beat expectations and announced a significant buyback, while Interactive Brokers reported mixed results. Both stocks saw a slight decrease in late trading. The stock market rallied towards the end of the day, with major indexes experiencing a slight retreat. However, the Dow Jones Industrial Average, S&P 500 index, and Nasdaq composite remained solid on weekly charts.
The small-cap Russell 2000 index saw a fractional gain despite the overall market decline. Various sectors such as homebuilders, financials, retailers, and healthcare displayed strength, with some showing buy signals. Crude oil prices fell due to geopolitical concerns, and the 10-year Treasury yield also saw a decline.
In terms of ETFs, growth ETFs like the Innovator IBD 50 ETF and the iShares Expanded Tech-Software Sector ETF saw some fluctuations. Chip-related ETFs like VanEck Vectors Semiconductor ETF experienced a significant sell-off. Nvidia, being a key holding in the SMH ETF, was impacted by the decline in semiconductor stocks.
Overall, the market experienced a mix of ups and downs, requiring investors to stay engaged and be prepared to react to market movements. Developing a diversified portfolio and adhering to sound investing strategy rules can help navigate through volatile times in the market.
It’s essential to assess individual stock performance within the broader market context and adjust positions accordingly. Staying informed about market trends and leading sectors can guide investors in making informed decisions.
