The Nasdaq composite experienced a positive reversal during the morning trading session on Thursday as investors analyzed the flurry of earnings reports and managed to gain some traction. While this was happening, chip giant Nvidia (NVDA) tested the bulls by falling below its 50-day moving average. Fellow chipmaker, Taiwan Semiconductor Manufacturing (TSM), also registered a defensive sell signal.
As the day progressed, the Nasdaq composite initially dipped by less than 0.2% before swinging back to post a 0.4% gain. Despite this, the tech-heavy index is down more than 3% for the week, marking its worst performance since the beginning of the year. The S&P 500 hovered near the break-even point before eventually rising around 0.4%, while the Russell 2000 and the Dow Jones Industrial Average also posted gains.
Bond yields have been rising, with the U.S. 10-year government bond yield climbing to 4.64%. The Federal Reserve is unlikely to cut interest rates at its upcoming meeting, according to CME FedWatch. Investors are closely watching company earnings reports for guidance on market trends, with Netflix (NFLX) and Intuitive Surgical (ISRG) among those reporting after hours.
The bitcoin market is also in focus ahead of the anticipated halving event, which could lead to increased scarcity and higher prices in the long term. The ProShares Bitcoin Strategy (BITO) ETF saw a 4% rally, hinting at a potential end to its recent decline. Economic indicators, such as the Philadelphia Fed’s manufacturing index and jobless claims, have shown mixed results.
In the banking sector, stocks like Comerica (CMA), JPMorgan Chase (JPM), Wells Fargo (WFC), and Bank of America (BAC) performed well despite some missing revenue estimates. D.R. Horton (DHI), a major homebuilder, also reported strong earnings and sales figures, signaling positive momentum in the housing market.
Overall, market trends continue to be influenced by various factors, including earnings, interest rates, and sector-specific news. Investors should stay informed and adapt their strategies accordingly to navigate the current market environment effectively.
