On Monday morning, Google and Nvidia stock boosted Nasdaq and S&P 500 futures, while Dow Jones futures rose somewhat. The upcoming week is dominated by the Federal Reserve meeting and artificial intelligence (AI) events hosted by Nvidia (NVDA) and Microsoft (MSFT).
A mixed bag was the week for the stock market surge. While the Nasdaq and small-cap Russell 200 fell below their 21-day lines, the Dow Jones and S&P 500 showed no movement. After starting the week on strong earnings from Oracle (ORCL), software stocks took a dive on Friday due to disappointing expectations from Adobe (ADBE).
In the upcoming week, there will be three major events. Meeting on both Tuesday and Wednesday, policymakers from the Federal Reserve will announce their most recent expectations for rate decreases during Wednesday afternoon’s meeting.
On Monday, Nvidia will kick off their four-day GTC Conference, where they will unveil a new AI processor among many other AI-related announcements. March 21 is the date of Microsoft’s “New Era Of Work” event, during which the company will unveil new AI capabilities and more.
After Adobe’s AI software plays rocked, the events at Nvidia and Microsoft will be crucial for the AI boom, but the Fed’s rate forecast will also have a big impact on the financial markets.
In the field of artificial intelligence, Nvidia and Microsoft are major participants. Tech companies like Advanced Micro Devices (AMD), Super Micro Computer (SMCI), Arm Holdings (ARM), Arista Networks (ANET), ServiceNow (NOW), Oracle (ORCL), Google parent Alphabet (GOOGL), and countless more could be significantly impacted, either positively or negatively, by their unveilings, announcements, and partnerships.
A rumor that Apple (AAPL) may include Google’s Gemini artificial intelligence engine inside the iPhone caused GOOGL stock to surge on Monday morning.
Stocks in Oracle, Microsoft, Google, and ServiceNow all presented buying opportunities earlier in the week, but by Friday night, investors had pulled back. While ARM is developing a new foundation, Arista Networks has already established one.
Investors should temporarily delay making fresh purchases due to the recent decline and the major anticipated events.
The IBD Leaderboard has Nvidia, ARM, and ServiceNow stocks. Stocks in Microsoft are among the IBD Long-Term Leaders. Stocks of ARM, Microsoft, Nvidia, Arista Networks, and ServiceNow are among those on the IBD 50. Stocks from Arista, Nvidia, SMCI, and NOW are included on the IBD Big Cap 20. The stock of the day on Friday was Arista Networks, according to IBD.
Viewers could see a video analysis of ServiceNow, Arista Networks, and East West Bancorp as the article’s linked video covered the previous week’s market activity.
Right Now, Dow Jones Futures
In comparison to their fair value, Dow Jones futures increased by 0.25 percent. Market leaders Google, Nvidia, and Tesla (TSLA) drove a 0.85% increase in S&P 500 futures and a 1.25% increase in Nasdaq 100 futures.
Somewhat, crude oil futures went up.
Despite predictions of a 5% growth, China’s industrial production increased by 7% year-over-year in January and February. The 5.5% increase in retail sales was just shy of the 5.2% forecasted increase.
Always keep in mind that the overnight fluctuations in Dow futures and other markets do not always reflect the trading activity that occurs during the next normal session of the stock market.
Following Tuesday, the stock market surge appeared due to achieve new record highs, but the main indexes retreated for the week as a result of losses on Friday.
During last week’s stock market trade, the Dow Jones Industrial Average closed with a little decrease. Falling 0.1% was the S&P 500 index. After dipping below both the 16,000 mark and its 21-day moving average, the Nasdaq composite lost 0.7% of its value. Due to narrow market breadth, the small-cap Russell 2000 fell 2.1%.
Following Nvidia’s downward reversal on March 8, the market surge has entered a period of consolidation.
While the Russell 2000 fell short of its late-December high, the Nasdaq is back to roughly where it was on February 12th. That may allow for the formation of new bases and bullish pullbacks. Several buy signals or breakouts that occurred in the previous two weeks, however, have been less than successful.
Hot inflation reports leading up to the Fed meeting sent the 10-year Treasury yield soaring, up by 21.5 basis points to 4.3% and pushing it closer to its 2024 highs.
At $81.04 a barrel last week, U.S. crude oil futures surged 3.9%. Oversupply caused copper prices to surge 5.9% to their highest closing in eleven months.
The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.6% among growth ETFs, with Friday’s 2.8% drop below the 50-day line contributing to the overall increase. Among IGV’s significant interests are Microsoft and ServiceNow. Upon retracing to the 21-day line, the VanEck Vectors Semiconductor ETF (SMH) had a decline of 3.2%. In SMH, Nvidia stock is king, with AMD also being a major player.
Even though the SPDR S&P Metals & Mining ETF (XME) fell 3.5% last week, certain steel plays and copper miners had amazing weeks. A 0.4% decline was recorded by the Global X U.S. Infrastructure Development ETF (PAVE). United States Global Jets ETF (JETS) fell 2.2%. XHB, the SPDR S&P Homebuilders ETF, rose almost 0.4%. While XLV, the Health Care Select Sector SPDR Fund, fell 0.7%, XLE, the Energy Select SPDR ETF, rose 3.8%. This morning, XLI, the Industrial Select Sector SPDR Fund, fell 0.2 percent.
A two-year high was achieved by the Financial Select SPDR ETF (XLF), which rose 0.5%. The KRE, an SPDR S&P Regional Banking ETF, fell 3.45%.
The ARK Innovation ETF (ARKK) fell 4.1% and the ARK Genomics ETF (ARKG) fell 6.35 percent last week, reflecting equities in more speculative narrative stocks.
Wednesday marks the end of the Federal Reserve’s two-day policy meeting. “Dot plot” showing Federal Reserve rate projections will be made public by policymakers. They expect three rate cuts by the end of 2023. There has been talk that the Fed would announce just two rate cuts in response to inflation readings that were higher than anticipated.
During the press conference that follows the meeting, Federal Reserve Chairman Jerome Powell will elaborate on the central bank’s stance on inflation and rate decreases.
The four-day GTC conference will begin late Monday with a keynote talk by Jensen Huang, CEO of Nvidia. In addition to data center hardware, PC gear, software, and more, Nvidia is expected to showcase its next AI accelerator. Super Micro, Oracle, ServiceNow, and many more are among Nvidia’s artificial intelligence (AI) partners.
Following an unpleasant reversal to the downside from record highs on March 8, Nvidia stock rose 0.35 percent to 878.37 during the week, with some large daily swings. On Monday morning, its shares increased somewhat.