Nasdaq Continues Momentum from Winning Week for Stock Market
Stocks continue to climb from a positive previous week and could surge when a new rate cut is announced.
Quick overview
- The stock indices continued to rise on Monday, with the Nasdaq Composite gaining 0.31% driven by strong tech stocks.
- Both the Dow and S&P 500 also saw increases of 0.22% and 0.19%, respectively, maintaining gains from the previous week.
- Analysts suggest a potential upward trend in the market as fears over AI market collapse diminish and investors gain confidence.
- The Federal Reserve's upcoming policy meeting may lead to a rate cut, further boosting investor optimism and market conditions.
After clinching a win last week, the stock indices continued to gain Monday morning, with the Nasdaq Composite adding 0.31% to its total thanks to climbing tech stock numbers.
The Dow was up 0.22% on Monday as stocks kept their gains from the previous week. The S&P 500 also added 0.19%, while the Nasdaq gained the most. Tech stocks in particular were bullish on Monday, with Alphabet (GGOGL) gaining 1.15% and Meta Platforms (META) up 1.80%.
The three major stock market indices have remained high for several days in a row, with both the Nasdaq Composite and the S&P 500 achieving four-day winnings treks by Friday last week. The Dow had remained positive for three days out of the last four days by then.
Promise of a Bullish Market
We could be seeing the start of an upward trend for the market after weeks of stability and volatility brought on primarily by AI market fears. As more assessments pour in by analysts to say essentially that the market does not appear to be ready to collapse, investors are buying stocks with more confidence.
The market may also get a boost this week from the Federal Reserve as it holds a policy meeting on Wednesday to determine whether to issue a new rate cut. Investors are anticipating a December cut, especially after the positive news from Friday’s core personal consumption expenditures price index. That report showed that prices were lower than anticipated, creating promising market conditions for a new rate cut and encouraging investors about the state of the economy.
As fears over the AI market’s collapse start to fade, tech stocks have the opportunity to surge. We have seen slight upward movement from Nvidia (NVDA) and Advanced Micro Devices (AMD), up 0.25% and 0.92%, respectively today. Tech stocks and particularly AI stocks have the opportunity to break out this week and make up for weeks of decline.
If the Fed does approve the rate cut, that will solidify their confidence in the economy and reassure investors that inflation will remain relatively stable. Several important earnings reports will be released this week, including quarterly statements from Lululemon, Adobe, Broadcom, Costco, and Oracle. We anticipate a slightly bullish market this week as the new economic data is processed and investors’ hopes remain high for a rate cut.
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