As Dow Jones futures gear up to open on Sunday evening, investors will be closely watching the U.S. markets after being closed on Friday. The Federal Reserve’s preferred inflation report met expectations, with Fed chief Jerome Powell expressing satisfaction with the data released on Friday. Despite some setbacks in growth stocks, particularly in the AI sector with leaders like Nvidia (NVDA), the stock market rally held strong throughout the holiday-shortened week.
While Nvidia continues to take a breather, other tech giants like Microsoft (MSFT), Meta Platforms (META), and CrowdStrike (CRWD) are showing bullish pullbacks. Additionally, the new AI chip IPO Astera Labs (ALAB) is retracing from its record high set on Tuesday, potentially forming a short IPO base in the near future.
On the horizon, China EV makers Nio (NIO), Li Auto (LI), and XPeng (XPEV) are set to report their March and first-quarter deliveries early on Monday, April 1. Meanwhile, EV giant BYD (BYDDF) is expected to announce a significant rebound in March deliveries, either on Monday or Tuesday. Tesla (TSLA) is also gearing up to share its first-quarter delivery numbers on Tuesday, with low expectations following recent delivery target cuts by Nio and Li Auto.
The market’s reaction to the PCE inflation data, released as part of the income and spending report, will be closely monitored. The Federal Reserve’s stance on a potential interest rate cut in June could be influenced by the inflation report. Powell noted that the PCE data was in line with expectations, keeping the possibility of a June rate cut on the table.
In terms of ETFs, growth ETFs like the iShares Expanded Tech-Software Sector ETF (IGV) and the VanEck Vectors Semiconductor ETF (SMH) saw modest declines last week, while more speculative story stocks like ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) made gains. Market breadth remained impressive throughout the week, with various sectors hitting record highs.
As investors await the opening of Dow Jones futures on Sunday evening, the stock market rally continues to show strength despite some setbacks in growth stocks. With key players like Nvidia and tech leaders on the move, the market is poised for an eventful start to the new trading week. Stay tuned for further updates on market trends and potential buying opportunities in the coming days.