Dow Jones Remains Flat as Tech Stocks Lead Bullish Market
Stock market prices are mostly high today, but the Dow Jones did not move at all during Wednesday even as tech stocks boom.
Quick overview
- The Nasdaq and S&P 500 indices are experiencing strong gains, while the Dow Jones remains flat.
- Nvidia and Oracle are leading the tech stock rally, with Nvidia climbing 2.20% on Wednesday.
- Concerns persist among analysts about the sustainability of the current stock market momentum.
- Oracle is viewed as undervalued and could be a promising investment opportunity amid the AI boom.
The stock market is maintaining its strong upward momentum, with the Nasdaq and S&P 500 indices climbing Wednesday, but the Dow Jones staying flat.
There was no new movement on the Dow Jones on Wednesday, but the Nasdaq Composite index grew by 1.12% to hit a new high. This index was led by pharmaceutical and medical sciences stocks as well as technology stocks like Oracle and Nvidia.
The S&P 500 saw another 0.58% in gains to reclaim its all-time high and continue its upward trend. We are seeing a mostly bullish market, but non-technology stocks are not performing as well during this period of AI and medical technology boom.
Can the Bull Market Sustain Its Momentum?
There is concern among economists and analysts that the stock market cannot keep up this momentum for much longer. If and when the decline starts, will it be gradual or will the stock market boom bubble burst all at once? Are we likely to see a repeat of what happened in April when stocks plummeted to their lowest point in almost a year?
That stock market falloff was sparked by high tariffs, and what we have seen lately is that President Donald Trump has backed down from many of his stiff tariffs. We have also seen the stock market respond less severely to new tariffs. So, if a falloff occurs again in the near future, it likely will not be over tariffs, as the market has seemingly built up resistance to that economic factor.
During Wednesday, Nvidia (NVDA) climbed another 2.20%, and then it added 1.53% more in premarket trading for Thursday. This stock is still leading the AI niche in a big way and should continue to do so as lawmakers in the United States have repeatedly backed off from their restrictions for the company this year.
Oracle (ORCL) added another 1.55% on Wednesday for its stock value and then gained another 0.27% in premarket trading for Thursday. This stock performed better in late September this year than it is right now, but that could quickly change, as Oracle is also riding the wave of AI enthusiasm. Now priced at $289.88 per share, this stock is considered undervalued by many analysts and could prove to be a great investment for traders looking to buy a promising stock during its dip.
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