Dow Jones futures saw a slight decline on Sunday evening, alongside S&P 500 futures and Nasdaq futures.
The stock market surge resulted in the Dow Jones, S&P 500, Nasdaq composite, and Russell 2000 all reaching new peaks during the past week, with technology stocks and small-cap companies taking the lead. Following an initial hesitation regarding the Fed’s interest rate reduction, stock prices rose significantly.
Please view the video on Investors.com – “Fed’s Behind Us, Power Trend Is Back On.” Robinhood, Oracle, and Broadcom are being highlighted.
Chip stocks saw significant gains asNvidiaNVDA bought an IntelIntel stock. Nvidia shares, following a hectic week, are at a critical point.
AppleApple’s stock is above purchase levels following the release of the iPhone 17 in stores on Friday, with indications of high consumer interest. Apple’s share price received an upgraded target on Sunday.
Dow Jones Futures Today
Dow Jones futures declined by 0.2% compared to fair value. S&P 500 futures dropped 0.1%, while Nasdaq 100 futures saw a slight decrease.
Remember the sudden movement during the nightDow futuresand elsewhere does not necessarily mean actual trading in the next regularstock market session.
Micron is Approaching, A ‘Joyful Dilemma’
Micron TechnologyMicron’s earnings are approaching, as the memory-chip leader has emerged as a major success in the AI sector. Anticipation is strong, with Micron announcing results earlier than usual and analysts forecasting a positive outlook.
Investors might want to take some partial gains before the earnings report. Micron’s stock declined on Friday, but following a significant upward movement.
More generally, investors face the “pleasant dilemma” of how to manage stocks that have seen significant and prolonged gains, includingAstera LabsALAB but particularly near-vertical speculative titles such asIonQIONQ and OkloOKLO.
Meanwhile, TeslaTSLA received regulatory approval on Friday night from Arizona to conduct tests of itsride-hailing service with safety drivers.
Join IBD specialists as they review top stocks and the market during IBD Live.
Stock Market Rally
The stock market surge continued to gain momentum, as all major indices reached new record peaks.
The Dow Jones Industrial Average increased by 1.05% during last week’s trading.stock market trading. The S&P 500 index increased by 1.2%. The Nasdaq composite and small-cap Russell 2000 rose by 2.2%.
The Nasdaq is 5.7% higher than its 50-day moving average, marginally in overbought territory.
Strong performance was seen in chips and speculative growth during the past week. Homebuilders faced losses due to increasing Treasury yields and weak guidance fromLennarLEN.
The 10-year Treasury yield increased by eight basis points to 4.14% after temporarily falling below 4% right after the Federal Reserve’s rate cut. Thus far, the rise in the 10-year Treasury yield has not affected the broader stock market, but it is something to keep an eye on.
U.S. crude oil prices dropped by one cent to $62.68 per barrel during the previous week.
Five Stocks Approaching Purchase Opportunities as the Market Rises
ETFs
Among growth ETFs, the Innovator IBD 50 ETFFFTY increased by 4.5% during the past week. The iShares Expanded Tech-Software Sector ETFIGV rose by 4.9%. The VanEck Vectors Semiconductor ETFSMH went up 3.7%, with Nvidia and Micron shares being significant components. The ARK Innovation ETFARKK surged 8.1% last week, while the ARK Genomics ETFARKG climbed 7.5%.
The SPDR S&P Metals & Mining ETFXME increased by 5.6% during the past week. The SPDR S&P Homebuilders ETFXHB decreased by 2.7%. The Energy Select SPDR ETFXLE slightly dropped by 0.1%, while the Health Care Select Sector SPDR FundXLV fell by 0.6%.
The Industrial Select Sector SPDR Fund XLI increased by 1%.
The Financial Select SPDR ETFXLF increased by 0.8%.
Top Performing Stocks to Consider and Monitor
Nvidia Stock at a Critical Juncture?
Nvidia’s stock declined by 0.7% to 176.60 during the previous week, yet recovered after falling under the 50-day moving average. The shares dropped following reports that China had instructed major Chinese companies to stop purchasing Nvidia’s AI chips, but then rose again after Nvidia revealed a $5 billion investment in Intel as part of a collaborative effort.
NVDA stock still shows a value of 184.48flat-base buy point, according to MarketSurgeInvestors might consider the short-term peak of 180.28 as a potential early opportunity to enter, or even Friday’s intra-day high of 178.08 as a more daring purchase level. Conversely, a break beneath the 50-day moving average and recent lower levels would indicate a selling opportunity.
Apple Stock
Apple’s stock increased by 4.9% to 245.50 during the previous week, with a 3.2% rise on Friday helping the tech company in the Dow surpass a new buy point of 241.32. The stock initially dropped following the expected release of the iPhone 17 on September 9, but AAPL has recovered due to robust preorders, as the newest models are now available in stores as of Friday.
Apple has informed at least some suppliers to increase manufacturing of the budget iPhone 17 by over 30%, according to The Information’s report on Friday, indicating strong consumer interest.
Dan Ives from Wedbush increased his Apple stock price forecast to 310, up from 270, on Sunday.
Micron, Astera, Oklo: Should You Sell Some Gains Now?
Micron’s stock increased by 3.5% to 162.73 during the previous week, despite a 3.65% decline on Friday. The shares have risen by 36.7% in September, reaching a new all-time high. Micron’s earnings report is scheduled for Tuesday night. Anyone who purchased the stock near the level of 128.60cup-with-handlebuy point can decide to maintain their entire position through the earnings report.
However, with Micron 31.3% above the 50-day moving average, investors may decide to secure some partial gains before the earnings report.
Astera Labs shares dropped 2.65% on Friday, closing at 245.20, yet the artificial intelligence chip company recovered from the 10-day moving average and gained 6.8% for the week and 34.6% this month. ALAB stock is now 45.8% higher than its 50-day average.
Both Micron and Astera are very profitable, experiencing rapid revenue increases.
In contrast, quantum computing company IonQ and nuclear startup Oklo are expected to face several years of losses, with the latter not yet generating any revenue. Both stocks have also seen significant and substantial gains in recent weeks.
IonQ’s stock increased by 26.6% during the week and has risen 64.7% this month. The shares are now 58.9% higher than the 50-day average and 26.7% above the 10-day average.
Oklo’s stock increased by 28.8% on Friday, rising 63.5% for the week and 83.6% in September. The shares are now 79.6% higher than the 50-day average and 56.6% above the 10-day average. On Sunday, Wedbush’s Ives raised his Oklo price target to 150 from 80.
Of course, stocks can potentially become even more overextended. None of these companies are currently experiencing peak performance.
Oklo’s stock surged significantly on Sunday night, while IonQ and Micron saw modest increases.
Trading a successful stock is more of an art than a science.
Selling a portion of shares as the stock price rises is an alternative. This approach can provide investors with the assurance to maintain a primary holding for additional profits and simplify the decision to sell when a successful stock starts to decline significantly.
Some investors might choose to gradually reduce their position when the stock price declines, decreasing their holdings as the stock crosses below the 10-day, 21-day, and 50-day moving averages, for example.
Frequently, either approach might result in investors selling at approximately the same prices.
In the end, investors must determine what suits them best, taking into account their confidence and involvement with specific stocks. Market circumstances also play a significant role. Given that the Nasdaq has slightly increased, the chances of a market decline affecting high-performing stocks are growing.
Why This IBD Application Makes It Easier Search For Top Stocks
What To Do Now
In addition to any pleasant challenges of deciding whether to secure profits from major successes, investors should have significant exposure.
A significant number of stocks are experiencing gains, including Micron, Astera, IonQ, and Oklo. Several stocks, such asPalantir[ticker symb=PLTR, had entries this week but are already extended. However, there are stocks forming opportunities. So continue working on your watchlists.]
In addition to Micron, JabilJBL, AutoZoneAZO, Costco WholesaleCOST and Uranium EnergyUEC is also available.
Micron stock is on Leaderboard. Astera Labs stock and Micron are onIBD 50. Nvidia stock and Palantir are trendingIBD Sector Leaders.
Read The Big Pictureevery day to remain aligned with market trends and top-performing stocks and industries.
Please follow Ed Carson on Threads at@edcarson1971 and X/Twitter at @IBD_ECarsonfor stock market news and additional information.
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