As the trading week comes to a close, investors are eagerly anticipating the opening of Dow Jones futures, S&P 500 futures, and Nasdaq futures on Sunday evening. Last week saw a slight pullback in the stock market, with Thursday’s downside reversal causing some concern. However, the major indexes managed to rebound on Friday, offering a glimmer of hope to investors.
Several key players in the AI chip industry, including Nvidia, are currently working on bases, signaling potential growth in the sector. Despite the recent setbacks, many leaders in the market are flashing buy signals, although head fakes are still a concern. Investors are advised to closely monitor the situation and consider incremental buys as the market remains rangebound.
Nvidia, Broadcom, Taiwan Semiconductor, and Astera Labs are all in the process of forming new bases or working on potential consolidations. Meanwhile, ARM Holdings and Super Micro Computer are also making strides in the AI chip market. On the other hand, Tesla experienced a setback due to weak first-quarter deliveries, but optimism returned after Elon Musk announced plans to unveil a robotaxi in August.
In the ETF market, growth ETFs such as the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF saw mixed results last week. Meanwhile, ARK Innovation ETF and ARK Genomics ETF experienced significant losses as Tesla stock, a major holding, struggled.
Looking ahead, investors are advised to exercise caution and wait for more convincing strength in the market before making any major moves. With Treasury yields at 2024 highs and uncertainty surrounding potential Fed rate cuts, the market rally may face some headwinds in the coming weeks. It’s essential for investors to stay informed and prepared for any potential market shifts.