Dow Jones Futures: Market Rally Signals New Run As Nvidia, AI Stocks Hit Buy

Dow Jones futures tilted higher overnight, along with S&P 500 futures and Nasdaq futures. JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) report early Friday.

decisions on interest rates impact both the economy and the stock market. IBD News Editor Ed Carson shares how reactions by each can differ and what investors need to know.” vid-name=”Fed Interest Rate Decisions: Market Influence And Investor Psychology Impact Of Cuts And Hikes” vid-cat=”Industry Insights” vid-date=”03/20/2024″ vid-date-tmsp=”1710938202″ vid-image=”https://www.investors.com/wp-content/uploads/2024/03/cReAVOpP-640×360.jpg” vid-authors=”MEREDITH HEYMAN”
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The stock market rallied generally as investors shrugged off a mixed March PPI inflation report following Wednesday’s hot CPI inflation reading.

The Nasdaq powered to a record close as Nvidia (NVDA) led again, flashing a buy signal after Wednesday’s bullish rebound.

Fellow AI chip and hardware stocks Broadcom (AVGO), Astera Labs (ALAB), Arista Networks (ANET) and Super Micro Computer (SMCI) had strong sessions as well. In the software sphere, Datadog (DDOG) triggered an early entry while Microsoft (MSFT) moved higher in a buy range.

Thursday offered opportunities to make some buys, but don’t ramp up exposure quickly. This might be the start of a new run, but it might be a false signal. The indexes, even the Nasdaq, are still in a sideways pattern.

Nvidia stock is on IBD Leaderboard. Nvidia, Microsoft and Broadcom stock are on SwingTrader. Microsoft stock is on IBD Long-Term Leaders. Nvidia, Microsoft, Citigroup and Arista stock are on the IBD 50. Nvidia, Datadog, Broadcom, Arista, Networks and Super Micro stock are on the IBD Big Cap 20.

Microsoft was Thursday’s IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures and Nasdaq 100 futures tilted higher.

The 10-year Treasury yield edged down to 4.56%.

Crude oil prices rose slightly.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze leading stocks and the market rally on IBD Live

Bank Earnings

Early Friday, JPMorgan, Wells Fargo, Citigroup and BlackRock (BLK) report, kicking off bank earnings.

JPMorgan stock, Wells Fargo and Citigroup are finding support around their 21-day lines following a strong advance. Wells Fargo stock, nearing a 10-week line test, has a five-weeks-tight entry of 58.44.

BlackRock stock is falling, losing sight of its 50-day line.

Stock Market Rally

The stock market rally rebounded Thursday in relief that the PPI inflation report wasn’t worse. Investors piled into AI stocks.

The Dow Jones Industrial Average closed fractionally lower in Thursday’s stock market trading, after hitting its worst levels in nearly two months intraday. The S&P 500 index climbed 0.7%, back above its 21-day line. The Nasdaq composite jumped 1.7% to a record close.

Once again, Nvidia led the Nasdaq and S&P 500, which both have rebounded from the 10-week line this week.

In addition to the other AI plays discussed in this article, Google parent Alphabet (GOOGL) and Amazon.com (AMZN) rose 2.1% and 1.7%, respectively, both to new highs and nearing $2 trillion market caps. Apple (AAPL) rebounded from 2024 lows, up 4.3% as JPMorgan talked up an AI-powered iPhone expected this fall.

But while megacaps and AI plays shined, volume was significantly lighter on both exchanges vs. Wednesday. Market breadth was positive, but lackluster given the Nasdaq’s gain.

The small-cap Russell 2000 climbed 0.7% to just above its 50-day line.

The Invesco S&P 500 Equal Weight ETF (RSP) dipped 0.1% after falling to the 10-week line intraday.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rose 1%, lagging the Nasdaq 100’s 1.6% gain but just retaking the 50-day.

The Nasdaq composite cleared a trendline as it set a record close. It’s still within the ugly downside reversal of April 4. Getting above that level, and the March 21 intraday peak, would decisively signal a positive bent.

Ideally, that would coincide with broader market participation.

U.S. crude oil prices fell 1.4% to $85.02 a barrel.

The 10-year Treasury yield rose 2 basis points to 4.575%, a five-month high and up 20 basis points for the week.

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) advanced 0.7%, with Microsoft stock the No. 1 holding. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.3%, with Nvidia the No. 1 component and Broadcom stock a key member.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) climbed 1.5% and ARK Genomics ETF (ARKG) climbed 0.5%.

SPDR S&P Metals & Mining ETF (XME) rose 0.35%. The SPDR S&P Homebuilders ETF (XHB) advanced 0.4%. The Energy Select SPDR ETF (XLE) dipped 0.2% and the Health Care Select Sector SPDR Fund (XLV) fell 0.4%.

The Industrial Select Sector SPDR Fund (XLI) edged up 0.1%. The…