Dow Jones futures, S&P 500 futures, and Nasdaq futures all saw slight declines after hours.
The stock market rally experienced modest gains on major indexes while small caps had a strong performance, driven by robust breadth. However, growth stocks struggled, with companies like Nvidia, Arm Holdings, Broadcom, Astera Labs, ServiceNow, and CrowdStrike all seeing declines. DraftKings also tumbled due to recent gambling scandals involving pro athletes.
Despite the challenges faced by growth stocks, many of them only pulled back to support levels. Companies like Eli Lilly, East West Bancorp, and Norwegian Cruise Line moved into buy zones. Nvidia, Arm, and DraftKings are highlighted in various stock lists.
Fed Gov. Christopher Waller signaled that there is no rush to cut rates, contributing to the decline in futures. Despite overnight actions, it’s important to remember that it may not reflect actual trading in the next stock market session.
The stock market rally saw gains on major averages and the Russell 2000 index, with Dow Jones, S&P 500, and Nasdaq all making positive strides. Market breadth was strong, with winners outnumbering losers on the NYSE and Nasdaq. The Russell 2000 reached a 23-month closing high.
Growth stocks faced challenges, with leading companies like Nvidia, Arm, Broadcom, Astera Labs, DraftKings, ServiceNow, and CrowdStrike seeing declines. ETFs like IGV, SMH, ARKK, ARKG, XME, PAVE, JETS, XHB, XLE, XLV, XLI, XLF, and KRE all showed varying levels of strength.
Stocks like Eli Lilly, East West Bancorp, and Norwegian Cruise Line were near buy points, indicating potential opportunities for investors. However, it’s important to stay vigilant and diversify beyond AI and tech stocks to sectors like financials, energy, industrials, and consumer plays.
Continue monitoring the market direction and leading stocks and sectors to make informed investment decisions. Stay updated on stock market updates and insights from various sources to navigate the ever-changing market landscape.
