Dow Jones futures, S&P 500 futures, and Nasdaq futures all fell slightly on Monday morning.
Two key factors that have been driving the stock market rally since late October are expectations of Fed rate cuts and the ongoing growth in artificial intelligence. Last week, the Federal Reserve confirmed plans for three rate cuts in 2024. Companies like Nvidia, Broadcom, and Microsoft had positive events related to AI, while Micron Technology reported strong profits and outlook due to AI trends. The market saw broad-based strength with many sectors experiencing gains and numerous stocks showing buy signals, including financials.
Uber Technologies, Eli Lilly, and CrowdStrike Holdings are among the leading stocks in consolidating patterns. There are still actionable names available for investors to consider, potentially looking beyond the extended AI leaders like Nvidia.
Recent news from China suggested measures to keep Intel and AMD microprocessors out of government systems, which caused Intel and AMD stock to drop slightly. Boeing announced changes in leadership following an incident involving one of their 737 Max jets, with Boeing stock seeing a modest uptick.
In terms of ETFs, various sector-focused funds saw gains last week, including those focused on technology, semiconductors, metals, infrastructure, airlines, homebuilders, energy, and healthcare.
Stocks like Uber, Eli Lilly, and CrowdStrike are approaching buy points after recent consolidations. Nvidia, Broadcom, Micron, and Microsoft are among the companies driving the market with their AI-related activities.
Overall, the stock market had a positive week, with several sectors and individual stocks showing positive signals. It’s important for investors to approach new purchases cautiously and focus on identifying promising opportunities based on strong setups. Keep an eye on market trends and leading stocks to inform your investment decisions.
