Dow Jones futures dipped slightly, alongside S&P 500 and Nasdaq futures, following notable overnight movements in Nike (NKE) and FedEx (FDX).
The stock market rally gained momentum on Thursday, responding to the Federal Reserve’s recent rate cuts. The Nasdaq surged ahead, clearing significant resistance levels, while both the Dow Jones and S&P 500 reached record highs.
Meta Platforms (META) broke above key buy points, and both Nvidia (NVDA) and Apple (AAPL) surpassed their 50-day moving averages. Tesla (TSLA) also rallied, surpassing a short-term high, presenting aggressive entry opportunities, though NVDA may still be in an early stage.
Additional stocks showing breakout potential or buy signals include Carpenter Technology (CRS), Spotify (SPOT), Shift4 (FOUR), Alibaba (BABA), Uber Technologies (UBER), Netflix (NFLX), Taiwan Semiconductor Manufacturing (TSM), Broadcom (AVGO), Modine Manufacturing (MOD), Monday.com (MNDY), TransMedics Group (TMDX), Royal Caribbean (RCL), Caterpillar (CAT), and Ferrari (RACE).
While the market showed broad advancements, a clear shift toward growth and aggressive growth stocks was evident, as defensive sectors like utilities and REITs saw slight declines.
Investors are encouraged to capitalize on these buying opportunities, focusing on high-growth names.
Dow Jones Futures Overview
As of now, Dow Jones futures remain just below fair value, despite a boost from Nike’s performance. S&P 500 futures are down 0.15%, and Nasdaq 100 futures have lost 0.2%. The 10-year Treasury yield has decreased to 3.71%.
China’s central bank maintained its interest rates, which was unexpected given the Fed’s significant cuts and China’s economic challenges. The Bank of Japan also kept its rates steady.
It’s important to note that overnight movements in Dow futures do not always reflect actual trading in the subsequent market session.
Nike Leadership Change
Nike announced that Elliott Hill will succeed John Donahoe as CEO on October 14. Hill previously served at Nike from 1998 until his retirement in 2020. Following this announcement, Nike stock jumped nearly 8% in late trading, after experiencing a downtrend since late 2021 amid challenges in China and rising competition.
FedEx Earnings Update
After the market close, FedEx (FDX) reported earnings that fell short of expectations and issued reduced guidance, resulting in an 11% drop in its stock during after-hours trading. Prior to this, FedEx shares had seen gains for nine consecutive sessions.
Lennar (LEN) reported better-than-expected earnings but lowered its margin guidance, leading to a modest decline in after-hours trading despite reaching new highs during Thursday’s session.
Market Summary
The stock market rally continued to thrive on Thursday, as investors reacted positively to the Fed’s rate cuts and an optimistic economic outlook. The Dow Jones Industrial Average rose 1.3%, and the S&P 500 climbed 1.7%, both reaching all-time highs. The Nasdaq composite jumped 2.5%, decisively moving above the 50-day line and clearing the 18,000 resistance level. Meanwhile, the small-cap Russell 2000 increased by 2.1%, approaching multiyear highs.
