Dow Jones, S&P 500, and Nasdaq futures are set to open Sunday evening, kicking off what promises to be an eventful week in the stock market. The Federal Reserve meeting and anticipated AI events from tech giants Nvidia and Microsoft will take center stage in the coming days.
Last week, the stock market rally experienced a mixed bag of results. While the Dow Jones and S&P 500 remained relatively unchanged, the Nasdaq and small-cap Russell 2000 saw a retreat below their 21-day lines. Software stocks, initially bolstered by strong earnings from Oracle, took a hit on Friday following disappointing guidance from Adobe.
Looking ahead, investors are gearing up for a trio of major events. The Federal Reserve will meet on Tuesday and Wednesday, providing updated projections for potential Fed rate cuts. Nvidia is set to kick off a four-day GTC Conference starting Monday, unveiling a new AI chip and other AI-related announcements. Meanwhile, Microsoft will host its “New Era Of Work” event on March 21, showcasing AI features and more.
The outcomes of these events will undoubtedly have a significant impact on the tech sector, particularly companies like Advanced Micro Devices, Super Micro Computer, and Google parent Alphabet. While some stocks like Microsoft, Oracle, and ServiceNow offered buying opportunities last week, the current pullback and upcoming events suggest that investors may want to hold off on new buys in the short term.
In the ETF market, growth ETFs like the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF saw mixed results last week. Additionally, the Fed’s rate-cut projections, Nvidia’s GTC Conference, and Microsoft’s AI innovations will be closely watched by investors as they navigate the current market landscape.
Overall, the stock market rally is taking a breather, providing potential opportunities for investors as new bases and bullish pullbacks begin to form. As the market digests the outcomes of the upcoming events, investors will be keeping a close eye on key players in the AI sector like Nvidia, Microsoft, and Oracle for cues on the future direction of the market.