Dow Jones Futures: Nvidia Leads 7 New Buys As Market Roars; Fed, Apple, Super

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, after a big week for the Nasdaq and leading stocks.

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Apple (AAPL), Amazon.com (AMZN), Novo Nordisk (NVO), Eli Lilly (LLY), Super Micro Computer (SMCI) and Advanced Micro Devices (AMD) all report this coming week. The latest Federal Reserve meeting and monthly jobs report are also on the slate.

The stock market rebounded strongly in the past week, fueled by big-cap earnings even amid an alarming inflation report. The Nasdaq and leading stocks were the standouts. as tech titans delivered strong growth and pledged heavy AI spending.

AI chipmakers Nvidia (NVDA), Broadcom (AVGO) and Astera Labs (ALAB) flashed buy signals, along with AppLovin (APP), KLA (KLAC), Cava Group (CAVA) and Embraer (ERJ).

Several other stocks flashed buy signals that have earnings due this coming week, including Hubbell (HUBB), Wingstop (WING), Texas Roadhouse (TXRH) and Generac (GNRC)

Investors should note the character change in the market. But keep some caution along with the revived bullishness. The major indexes are all below their 50-day moving averages. The heavy earnings calendar could still swing the market and sectors, with Super Micro and AMD key for AI hardware plays. Apple is a laggard, but it’s still an enormous tech titan with a huge iPhone ecosystem. Any AI hints could help or hurt a slew of stocks.

The Fed meeting and key economic data also could derail the nascent market rally.

Nvidia, Novo Nordisk, Generac, KLA and Cava stock are on IBD Leaderboard, with Eli Lilly stock on the Leaderboard watchlist. Nvidia stock is on SwingTrader. KLA stock is on IBD Long-Term Leaders. Wingstop, Hubbell and Texas Roadhouse are on the IBD 50. Broadcom, Hubbell and Super Micro stock are on the IBD Big Cap 20. Cava was Friday’s IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

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

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Stock Market Rally

The stock market rally had a strong week, especially the Nasdaq and leading names. The Dow Jones Industrial Average advanced 0.7% in last week’s stock market trading. The S&P 500 index leapt 2.7%. The Nasdaq composite surged 4.2%. The small-cap Russell 2000 popped 2.8%.

The bounce to start the week wasn’t a real surprise after a long string of losses. On Thursday morning, the rally attempt appeared to be in trouble, selling off on hot inflation data and Meta Platforms (META) tumbling on guidance. But the major indexes slashed losses, in part because Meta’s sell-off on heavy AI spending buoyed Nvidia, Broadcom and AI hardware.

On Friday, the rally revved higher, fueled by strong earnings and spending plans from Microsoft (MSFT) and Google parent Alphabet (GOOGL).

The Nasdaq’s 2% gain Friday came in volume that was slightly lower vs. Thursday. However, a large number of leading stocks flashed buy signals or extended moves.

The major indexes could face resistance at the 50-day line, with the S&P 500 and Nasdaq nearly at the key level. A heavy calendar of earnings and economic news awaits investors in the coming week.

The 10-year Treasury yield rose 5.5 basis points to 4.67%, up 48 basis points in just four weeks. On Thursday, the 10-year Treasury yield nearly hit 4.74%, the highest since Nov. 1.

Markets now see the first Fed rate cut in September, and that’s no lock. Investors are roughly split on whether there will be one or two cuts in 2024, with a decent chance of no action at all.

The Fed meeting statement and Fed chief Jerome Powell, along with the April jobs report and other key data, should swing Treasury yields and rate-cut odds.

U.S. crude oil futures rose 2% to $83.85 a barrel.

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) gained 3.3%. The VanEck Vectors Semiconductor ETF (SMH) roared 9.25%. Nvidia is the No. 1 holding with Broadcom stock also a key component.

The SPDR S&P Metals & Mining ETF (XME) dipped 0.1% last week. The Global X U.S. Infrastructure Development ETF (PAVE) climbed 2.3%. The SPDR S&P Homebuilders ETF (XHB) gained 3.6%. The Energy Select SPDR ETF (XLE) advanced 0.8%, and the Health Care Select Sector SPDR Fund (XLV) added 0.7%, with Eli Lilly stock a notable holding.

The Industrial Select Sector SPDR Fund (XLI) stepped up 1.8%. The Financial Select SPDR ETF (XLF) gained 1.1%.

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Nvidia, AI Chip Stocks Flash Buy Signals

Nvidia stock  jumped 15.2% last week to 876.90. Friday’s 6.1% gain pushed NVDA stock back above the 50-day line and just above a downward-sloping trendline, offering an early entry. Nvidia stock has a 974 buy point.

CBS’ “60 Minutes” was set to feature Nvidia on Sunday night, with an interview with…