Dow Jones, S&P 500, and Nasdaq futures remained relatively stable on Sunday night, indicating a continuation of the ongoing stock market rally. The Nasdaq composite reached a new record high, aligning with the S&P 500’s performance. Notable stocks to keep an eye on include Taiwan Semiconductor Manufacturing, Monolithic Power Systems, Microsoft, Palantir Technologies, Deckers Brands, Eli Lilly, Coherent, and Uber Technologies. These market rally leaders have been consolidating for a few weeks, presenting fresh buying opportunities for investors.
Many of these stocks are involved in artificial intelligence (AI) endeavors, with companies like Nvidia and Taiwan Semiconductor riding the wave for advanced semiconductors. However, both the Nasdaq and S&P 500 are showing signs of being overextended once again. Following a brief window of opportunity, investors may want to exercise caution. Super Micro Computer and Deckers experienced significant jumps on Friday following news that they would be joining the S&P 500 index.
Microsoft, Palantir, Eli Lilly, and Taiwan Semiconductor stocks are under the radar of SwingTrader, with Microsoft also being featured on IBD Long-Term Leaders. Monolithic Power finds a place on the Long-Term Leaders watchlist, while Palantir is part of the IBD 50. Deckers, Palantir, Super Micro, Deckers, and Uber Technologies are included in the IBD Big Cap 20.
Looking ahead, the week’s market action will be analyzed, focusing on Taiwan Semiconductor stock, Tidewater, and Confluent. Dow Jones futures saw a slight dip, while S&P 500 futures followed suit. Nasdaq 100 futures remained largely unchanged. The 10-year Treasury yield saw a marginal increase to 4.2%, while crude oil futures held steady.
The stock market rally has been propelled by the tech and small-cap sectors, with the Nasdaq composite achieving a new record high after a brief pause. The week also saw notable advancements in growth ETFs, such as the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF. Investors are advised to remain vigilant and stay informed on market trends to make informed decisions.