After hours, Dow Jones futures showed little change, along with S&P 500 futures and Nasdaq futures. Micron Technology’s strong earnings led to a significant increase in the stock, which is a positive sign for the chip sector and artificial intelligence companies.
The stock market had a mixed day on Wednesday, with small caps experiencing broad declines. The Nasdaq saw a slight increase, especially with Nvidia extending its positive movement from the previous day. Meta Platforms hit new highs following Mark Zuckerberg’s remarks on AI and reality glasses at the Connect conference.
Chinese stocks traded in the U.S. experienced modest declines on Wednesday but closed near session highs after significant gains the previous day due to monetary stimulus expectations. Bilibili, BYD, and Tencent Holdings performed well, while ServiceNow faced a setback due to a Justice Department investigation.
Overall, the stock market rally showed a pause or slight pullback on Wednesday, with major indexes experiencing varied movements. Small-caps struggled, while megacaps like Nvidia, Meta, Tesla saw some positive momentum.
The memory chip giant, Micron, reported impressive earnings, which bodes well for the chip and AI sectors. Other companies in the memory chip and chip-equipment industry like Western Digital, Applied Materials, and Lam Research also saw gains.
In terms of ETFs, growth ETFs like the Innovator IBD 50 ETF and the ARK Innovation ETF experienced some decline, while the VanEck Vectors Semiconductor ETF and SPDR Metals & Mining ETF showed gains.
Nvidia stock saw an increase following Micron’s earnings report, with shares inching closer to establishing a new buy point. Meta’s CEO, Mark Zuckerberg, made significant announcements at the Connect conference, boosting Meta stock. Chinese stocks like Tencent, Bilibili, and BYD experienced mixed movements.
Overall, while the market rally seems to be pausing, it is still in a healthy state. Investors should focus on maintaining their existing holdings, looking for new setups, and staying informed on market trends. Incremental buys and add-on purchases could be considered, but making too many trades is not necessary at this time. It is crucial to continuously monitor the market direction and leading stocks and sectors.
