Dow Jones futures saw a slight increase early Thursday, while S&P 500 futures and Nasdaq futures dipped slightly.
Artificial intelligence (AI) stocks, including Oracle (ORCL), Nvidia (NVDA), Arm Holdings (ARM), and Palantir Technologies (PLTR), which led the S&P 500 to a new high on Wednesday, pulled back before the market open on Thursday.
Meanwhile, GE Aerospace (GE) exceeded expectations, increasing its dividend and announcing a $7 billion buyback. This news caused GE stock to jump before the open, signaling a breakout.
Trump’s $500 Billion Stargate AI Infrastructure Project
AI stocks surged Wednesday after President Donald Trump announced a $500 billion Stargate AI infrastructure project, led by Oracle, OpenAI, and SoftBank, with involvement from Arm Holdings, Microsoft (MSFT), and Nvidia.
- Oracle stock gapped up within a base.
- Arm stock moved through a buy zone.
- Microsoft and Nvidia stocks surged within messy patterns.
- CrowdStrike (CRWD) and Palantir stocks flashed buy signals.
Additionally, Netflix (NFLX) and Interactive Brokers (IBKR) broke out of bases on earnings results, while Capital One Financial (COF) and Amphenol (APH) also broke out on their quarterly results.
Market Performance and Trends
The stock market rally had another strong session, though Wednesday’s gains were largely driven by tech and AI stocks.
The Dow Jones Industrial Average rose by 0.3%.
The S&P 500 gained 0.6%, surpassing its December 6 peak intraday.
The Nasdaq Composite increased by 1.3%, surpassing the 20,000 level and now just 1% from the all-time high set on December 16.
Small-cap stocks underperformed, with the Russell 2000 dropping 0.61%, hitting resistance just below the 50-day line. Sector ETFs showed mixed performance, with tech and AI-focused ETFs doing well, while other sectors saw declines.
U.S. crude oil prices fell 0.5% to $75.44 per barrel, dropping 5.75% over the last four sessions.
The 10-year Treasury yield rose to 4.64%.
AI Stocks Soar Following Stargate Announcement
The Stargate AI infrastructure project announcement sparked a surge in AI stocks:
Oracle stock gapped up by 6.7% to 184.18, moving above the 50-day line and nearing the buy point of 198.31.
Arm stock rose 16% to 179.93, breaking through the buy zone of its six-month cup-with-handle base.
Palantir stock climbed 5.2% to 76.87, reclaiming the 10-week line after support around the 50-day line last week.
CrowdStrike stock surged 3.2% to 377.98, breaking above its flat base.
Nvidia stock rose 4.4% to 147.07, rebounding after reclaiming the 50-day line.
Microsoft stock jumped 4.1% to 446.20, rebounding from the 50-day line ahead of its earnings report on January 29.
While these stocks pulled back slightly early Thursday, they retained most of Wednesday’s gains.
What Investors Should Do Now
The stock market rally continues to make progress, with major indexes surpassing several resistance levels. Many stocks have shown strong momentum, especially in the tech and AI sectors.
For investors:
If you’ve been gradually adding exposure in recent sessions, continue to do so.
If your portfolio is near full exposure, avoid major changes. Consider trimming lagging positions to focus on more promising names.
Be cautious not to become overly concentrated in AI stocks, as this could increase portfolio risk if the sector faces a downturn.
AI stocks were a major driver of gains on Wednesday, but maintaining a balanced portfolio with diversification is key to managing risks and opportunities in this dynamic market.
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