Nasdaq Hits 2023 Highs With Fed Due; Nvidia Reclaims Buy Point – Press Stories

The stock market remained steady after hours on Tuesday, with the Dow Jones futures, S&P 500 futures, and Nasdaq futures showing little movement. Investors are eagerly awaiting the decision from the Federal Reserve meeting.

On Tuesday, the stock market experienced a rally, with the Nasdaq hitting a 2023 high and the S&P 500 and Dow Jones also performing well. The CBOE Volatility Index (VIX), a measure of market fear, fell to its lowest point since January, indicating excessive bullishness.

Leading stocks such as Nvidia, Microsoft, Amazon, Netflix, Datadog, and Freshworks found support around their 21-day exponential moving averages. Microsoft, Amazon, and Freshworks even entered official buy zones.

However, Tesla experienced a retreat but managed to find support at its 50-day moving average.

All eyes are now on the Federal Reserve’s two-day meeting, set to conclude on Wednesday. Fed chief Jerome Powell is expected to make a policy announcement and hold a news conference. Investors are particularly interested in whether the Fed will signal a shift toward rate cuts in 2024. Currently, the market is speculating on four to five rate cuts by the end of 2024.

In Tuesday’s after-hours trading, Dow Jones futures rose 0.1%, while S&P 500 futures and Nasdaq 100 futures both climbed 0.1%. Additionally, the 10-year Treasury yield fell to 4.19%.

During the stock market rally, the Dow Jones Industrial Average and the S&P 500 index both rose 0.5%, and the Nasdaq composite climbed 0.7%. The Nasdaq reached a 20-month high, while the S&P 500 and Dow Jones also performed well.

Crude oil prices, however, experienced a 3.8% decrease, reaching their lowest close since late June. This, coupled with the VIX falling to its lowest level since January 2020, suggests a potential market pullback.

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In terms of exchange-traded funds (ETFs), the iShares Expanded Tech-Software Sector ETF and VanEck Vectors Semiconductor ETF saw gains, while the ARK Innovation ETF and ARK Genomics ETF declined. The SPDR S&P Metals & Mining ETF and Energy Select SPDR ETF also experienced losses.

Among individual stocks, Microsoft, Amazon, Netflix, Datadog, and Freshworks all showed positive movement, finding support and potential buy points. Nvidia’s stock remained steady, while Tesla’s stock experienced a decline.

While the overall market rally is showing strength, cautiousness is advised due to the lack of market fear. Minor portfolio adjustments can be made, but major changes are not recommended at this time.

It is essential for investors to stay informed about market direction, as well as leading stocks and sectors, in order to make well-informed decisions.

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About the Author: Cary Douglas

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