Market Update
Dow Jones Futures: Rose 0.5% vs. fair value, indicating a positive start for Thursday’s session.
S&P 500 Futures: Increased by 0.15%.
Nasdaq 100 Futures: Saw a slight rise of 0.1%.
Nvidia’s Earnings Impact
Nvidia (NVDA): The stock fell significantly after its earnings report, despite exceeding earnings expectations, raising guidance, and announcing a $50 billion buyback program. However, Nvidia shares recovered from their initial lows, showing some resilience.
Other AI Stocks: Broadcom (AVGO), Taiwan Semiconductor Manufacturing (TSM), Advanced Micro Devices (AMD), and Arista Networks (ANET) also experienced slight declines.
Notable Stock Movements
Salesforce (CRM): The stock surged after reporting strong earnings, benefiting from its position as a Dow component.
CrowdStrike (CRWD) and Okta (OKTA): Both companies beat expectations, contributing to their stock performance.
Storage Plays: NetApp (NTAP), Pure Storage (PSTG), and Nutanix (NTNX) also reported strong results but showed varying stock performances.
Market Rally and Sector Performances
Previous Session: The market rally weakened on Wednesday, influenced by Nvidia’s earnings report and declines in other tech stocks. The Dow Jones Industrial Average fell 0.4%, the S&P 500 lost 0.6%, and the Nasdaq Composite dropped 1.1%.
Super Micro Computer (SMCI): Experienced a significant drop of 19% due to delays in its SEC filing and concerns about accounting practices.
Treasury Yields and Oil Prices
10-Year Treasury Yield: Dipped to 4.82%.
Crude Oil Futures: Fell slightly by 1.3% to $74.52 per barrel.
ETFs Performance
Growth ETFs:
iShares Expanded Tech-Software Sector ETF (IGV): Declined by 1.2%.
VanEck Vectors Semiconductor ETF (SMH): Fell by 1.7%, reflecting the impact of Nvidia’s performance.
Speculative ETFs:
ARK Innovation ETF (ARKK): Dropped by 2.5%.
ARK Genomics ETF (ARKG): Retreated by 1.6%.
Sector-Specific ETFs:
SPDR S&P Metals & Mining ETF (XME): Lost 1.9%.
SPDR S&P Homebuilders ETF (XHB): Declined by 0.7%.
Energy Select SPDR ETF (XLE): Dropped by 0.6%.
Health Care Select Sector SPDR Fund (XLV): Rose by 0.1%.
Industrial Select Sector SPDR Fund (XLI): Fell slightly.
Financial Select SPDR ETF (XLF): Increased by 0.25%.
Summary
The market showed mixed signals as Nvidia’s earnings results created volatility across tech stocks, with Nvidia itself recovering from initial declines. Other key stocks and ETFs demonstrated varied performances, reflecting broader market reactions and sector-specific trends.
