The stock market is poised for another strong week as Dow Jones futures, S&P 500 futures, and Nasdaq futures are set to open Sunday evening following all-time highs and significant weekly gains. The market rally has been fueled by expectations of a Federal Reserve rate cut and a booming artificial intelligence (AI) sector.
The Fed is projected to cut rates three times in 2024, which has boosted investor confidence. Companies like Nvidia, Broadcom, and Microsoft have recently had upbeat AI events, while Micron Technology surprised investors with a profit report. Uber, Eli Lilly, and CrowdStrike Holdings are among the leading stocks showing potential for growth in consolidations.
Last week, the Dow Jones Industrial Average gained 2%, the S&P 500 index jumped 2.3%, and the Nasdaq composite rose 2.85%. The small-cap Russell 2000 even hit a 23-month closing high. Growth ETFs like IGV, SMH, and XME have seen gains, along with stocks like Uber, Eli Lilly, and CrowdStrike.
AI stocks, including Nvidia, Broadcom, Micron, and Microsoft, have seen significant increases in value recently. Investors are advised to make new purchases cautiously and to explore opportunities beyond the typically extended AI names. Monitoring market direction and keeping an eye on leading stocks will be crucial in the coming weeks.
For more updates and insights, you can follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson. Stay informed and stay ahead in the ever-evolving world of finance and technology.
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