Weekly Market Review: Strong Comeback for Stocks as Microsoft Takes the Lead

Dow Jones Futures
Dow Jones futures showed marginal gains against fair value. S&P 500 futures remained steady, while Nasdaq 100 futures experienced a slight increase.

The U.S. stock market had a robust rebound last week after a dip at the beginning of 2024. Key stocks and major indexes found support at crucial levels, resulting in numerous stocks displaying buy signals. Nvidia’s powerful breakout played a significant role in leading the overall market once again.

Stocks in Focus:

• Nvidia (NVDA): The stock is currently extended.
• Microsoft (MSFT): Positioned just above a buy point after a solid weekly gain, close to surpassing Apple’s market cap.
• Novo Nordisk (NVO): Remains in a buy zone.
• MercadoLibre (MELI) and Tradeweb Markets (TW): Flash entries intraday.
• Tesla (TSLA): Faced a challenging week, extending recent sell-offs and breaking key support levels.

Highlighted Stocks on Various Platforms:

• Nvidia and NVO on IBD Leaderboard.
• MELI, Nvidia, and MSFT on SwingTrader.
• MSFT on IBD Long-Term Leaders.
• Nvidia, MELI, NVO, and MSFT on the IBD 50.
• MSFT, Nvidia, and MELI on the IBD Big Cap 20.

• Dow Jones Industrial Average edged up 0.3% in the previous week.
• S&P 500 index rose by 1.8%, hitting 52-week highs.
• Nasdaq increased by 3.1%, rebounding from the 10-week line.
• Small-cap Russell 2000 faced resistance at the 21-day line.
• Invesco S&P 500 Equal Weight ETF (RSP) held above the 21-day and near 52-week highs.
• Weak breadth observed in 2024, impacting market rally.

• 10-year Treasury yield fell 9 basis points to 3.95%.
• Two-year Treasury yield dropped 25 basis points to 4.14%.
• U.S. crude oil futures fell 1.5% to $72.68 a barrel.

• iShares Expanded Tech-Software Sector ETF (IGV) rebounded 5.7%, with MSFT as a major holding.
• VanEck Vectors Semiconductor ETF (SMH) rose 4.1%, with NVDA as the largest holding.
• SPDR S&P Metals & Mining ETF (XME) fell 1.1%, while U.S. Global Jets ETF (JETS) slumped 3.25%.
• SPDR S&P Homebuilders ETF (XHB) stepped up 2.2%, Energy Select SPDR ETF (XLE) fell 2.4%, and Health Care Select Sector SPDR Fund (XLV) rose 1%.

• Tesla stock faced challenges, with a 7.8% decline for the week.
• Prices were reduced in its key market, and production suspension was announced at the Berlin plant for two weeks.
• Hertz decided to sell many EVs, including Tesla vehicles, at reduced prices, citing weak demand and high repair costs.

• The market rally demonstrated strength, with stocks recovering after a brief dip in early 2024.
• Investors had opportunities to add exposure during the week.
• Stocks are setting up new consolidations, often just above or at the top of deep bases.

• Stay updated with The Big Picture daily to align with market direction and leading stocks and sectors.