The Nasdaq composite faced a major selloff today, largely due to weaknesses in semiconductor stocks such as Nvidia (NVDA) and Advanced Micro Devices (AMD). Futures took a hit overnight, dropping over 1% after news of Israel retaliating against Iran with limited strikes emerged.
On the other hand, Trump Media (DJT) saw a 12% increase early in the trading session, but later tapered off. The company flagged potential stock manipulation to the Nasdaq last Friday. The Dow Jones Industrial Average climbed 0.5%, driven by strong earnings reports from companies like American Express (AXP) and Procter & Gamble (PG). American Express shares surged 4% after beating expectations, while Procter & Gamble dipped 1% on slightly lower-than-expected revenue.
The S&P 500 was down 0.5%, breaching the 5,000 level after breaking below its 50-day moving average earlier in the week. While the Nasdaq struggled, small caps, as represented by the Russell 2000, only saw a slight dip of 0.2%. Despite some negative trends in the stock market, winners managed to edge out losers, with broader market breadth showing mild positivity.
Overall, the stock market is facing pressure from multiple factors, including distribution-day counts and weakening breadth on major exchanges. Despite this, certain stocks like Bank of America (BAC) and Wells Fargo (WFC) are still in buy zones, indicating some opportunities for investors.
In terms of individual stocks, Netflix (NFLX) took a hit after reporting strong earnings but disappointing revenue outlook. Meanwhile, Shopify (SHOP) received an upgrade from Morgan Stanley but has seen substantial drops from its highs. Bitcoin and Coinbase (COIN) also saw some movement, while Nvidia and AMD struggled amid the overall selloff in semiconductor stocks.
Looking ahead, stocks like Tesla (TSLA), Microsoft (MSFT), Meta Platforms (META), and Alphabet (GOOGL) are expected to report earnings in the coming week, which could have a significant impact on the market. It’s important for investors to stay informed and monitor these developments closely for potential trading opportunities.
