Dow Jones futures rose overnight, along with S&P 500 futures and Nasdaq futures. Nvidia chipset maker Taiwan Semiconductor Co., Ltd (TSM) early Thursday, with major implications for the chip sector.
X
The stock market rally opened slightly higher but quickly headed lower again, with the Nasdaq leading the decline.
Chip stocks were among the biggest losers on Wednesday. Blame it on the disappointing results and guidance from the semiconductor equipment giant ASML (ASML), as well as caution ahead of the Taiwan Semi results.
Artificial intelligence chip makers Nvidia (NVDA), Broadcom (Afgo) And Holding arm (arm) Suffered significant to severe losses. As for chip equipment makers, ASML stock fell, while… Applied materials (deaden), L Research (LRCX), Kosovo Liberation Army Company (KLAC) Breaking key levels.
Artificial intelligence server maker Super micro computer (SMCI) reversed lower after triggering buy signals near the opening price.
while, Tesla (TSLA) held at its lowest levels in 2024
Investors should realize that the nature of the stock market has changed.
Nvidia stock is on IBD Leaderboard. KLAC stock is on IBD's list of long-term leaders. Nvidia, ASML, and Broadcom shares are on the market Bahraini dinar 50. Nvidia, ASML, Broadcom, and SMCI stocks are in the market IBD Big Cap 20.
Dow jones futures today
Dow Jones futures rose against fair value. S&P 500 futures rose 0.1%. Nasdaq 100 futures rose 0.2%.
Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market pool
The stock market rally continues to come under increasing pressure, with Wednesday's small initial gains quickly turning into losses again.
The Dow Jones Industrial Average fell 0.1% in stock market trading Wednesday, its worst levels since late January. The S&P 500 fell 0.6% and the Nasdaq Composite lost 1.15%, both at their worst levels in two months. The small-cap Russell 2000 fell 1% to a new two-month low.
They are all well below the 50-day lines.
Most of the recent breakouts or buy signals have struggled or failed completely in the past few days.
Many indicators suggest that the market is oversold, but this has been true all week. the CBOE Volatility Index It is trading around its 2024 highs, although it is not showing excessive downtrend.
But while the market may be “ready” for some type of bounce, it does not have to happen immediately and it does not have to last.
US crude oil prices fell by 3.1% to $82.69 per barrel.
The yield on the 10-year Treasury note fell by 7 basis points to 4.58%. But it is still up 38 basis points in April alone.
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ETFs
Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) decreased by 0.6%. VanEck Vectors Semiconductor ETF (Trait) decreased by 3.1%. Nvidia and TSM stocks are the largest holdings in SMH, with Broadcom, ASML, Applied Materials, Lam Research, and KLA also major components.
Reflecting more speculative stocks, the ARK Innovation ETF (Ark(down 1.4% and ARK Genomics ETF)Arkj) Waiver of 2.3%. Tesla stock is a prime holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining Fund (XME) reversed to decline by 0.15%. US Global Jets ETF (Planes) jumped 3.9% United Airlines (first) rose on earnings. SPDR S&P Homebuilders ETF (XHB) Precipitation 0.8%. Energy Select SPDR ETF (XLE(decreased by 0.3% and the Healthcare Sector SPDR Fund)Forty-fifth) decreased by 0.2%.
Selected Industrial Sector SPDR Fund (forty-first(down 0.5% and Financial Select SPDR ETF)XLF) rose by 0.25%.
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Taiwan Semiconductor Earnings
Taiwan Semiconductor profits are expected to be flat, even though the foundry giant reported higher-than-expected first-quarter sales last week, boosted by cutting-edge artificial intelligence chips.
TSMC makes chips for Nvidia apple (Camel), Broadcom and many more.
Taiwan Semiconductor shares fell 0.55% to 139.03, hitting resistance at the 21-day line after bouncing from the 10-week line on Tuesday. TSM stock is on track to find a new base with a 158.40 buy point after Friday's close. But investors can use the April 10 high of 148.43 as an early entry.
Artificial intelligence chips stock struggle
Taiwan Semi's findings and guidance will be key for AI chip leaders Nvidia, Broadcom and Arm.
Nvidia stock fell 3.9% to 840.35, falling below the 10-week line for the first time since early November. Stocks held their 50-day line. NVDA stock has 974 buy points from a flat base.
Broadcom stock fell 3.3% to 1,284.61, breaking below its 50-day line. AVGO stock saw a new consolidation, with 1,403.98 as a buy point.
ARM stock fell 12% to 107.50, paring consolidation lows and now well below its 50-day line.
Super Micro is not a chip maker, but its AI servers are a home for AI processors from Nvidia and others. SMCI stock was right in the buy zone after rising 10.6% on Tuesday. On Wednesday, shares hit 1,020.33 during the day, breaking the trend line, but reversed to close 1.7% lower at 960.14%, holding the 21-day and 50-day lines.
Taiwan Semiconductor's capital spending targets will be important to the chip equipment giants.
ASML fell 7.1% to 907.61, breaking its 50-day line and the lows of its flat base. The Dutch chip equipment maker missed sales and guidance early Wednesday.
AMAT, Lam Research and KLA shares fell about 5%, settling below their 50-day lines. Lam Research and KLA report next week.
Tesla shares
Tesla shares fell 1.1% to 155.45, extending its weekly loss to 9.1%. Shares have fallen to 2024 lows and are just above the late April 2023 low.
Tesla's earnings on April 23 loom, with a conference call of great importance. Analysts and investors want some clarity on Tesla's strategy.
On Wednesday, Tesla asked shareholders to approve the company's reincorporation in Texas and approve a $55.8 billion pay package that was invalidated by a Delaware court.
Market rise analysis
The stock market is not doing well. Major indices have decisively broken below their 50-day moving averages.
It is possible that the market will rebound, albeit briefly, triggering some buy signals. But the major indices and most leading stocks will still need a significant amount of work.
Wait for real evidence of strength, not just one good day and certainly not just one strong opening.
Investors should have reduced their exposure amid market weakness. Even ignoring leading indicators, investors should reduce exposure simply by cutting losers and taking profits.
Tesla, Google, Meta platforms (dead) And Microsoft (MSFT) earnings report along with hundreds of others, creating the potential for big moves in stocks, sectors and the market.
Of course, upcoming profits can provide a positive incentive, so you need to be prepared.
Stay tuned to the market and work on those watch lists. Focus on stocks that are holding key levels and showing relative strength. Remember, just because a stock looks resilient today doesn't mean it will hold up in the future.
Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.
Please follow Ed Carson on topics at @edcarson1971 And X/Twitter at @IBD_ECarson For stock market updates and more.
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