Stock Market Today: Nasdaq Hot, But Watch Out For This; Cathie Wood AI Play In Buy Zone


Dow Jones futures will open Sunday evening, along with S&P 500 and Nasdaq futures.




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The stock market rally continued to advance last week, with the S&P 500 surpassing the 5,000 mark for the first time. The Nasdaq Composite Index advanced, briefly surpassing 16,000 and approaching all-time highs.

Several huge AI-related revenue gaps have taken place, including Arm holds (ARM), Palantir Technologies (PLTR) And Cloud Flare (NET). These reports also boosted other AI and cloud-focused chip and software stocks.

UiPath (PATH), a big play from Cathie Wood AI, surged on Friday, flashing buy signals. samsara (IoT), another AI title, is also found in Buy Zones. SPS-Commerce (SPSC) broke out, while Intracellular therapies (ITCI) And Shift4Payments (FOUR) are usable.

But as the market rally appears prolonged, investors should be wary of further buying.

Earnings season remains in effect. Arista Networks (A NET) Cadence Design Systems (CDNS) And Medspace Holdings (MEDP) report Monday evening, while Shopify (SHOP) And Data Dog (DDOG) are expected early Tuesday.

Arm stock and Shopify are enabled MII classification. Cadence Design stock is on IBD's Long-Term Leaders list. Arm, Arista, Samsara, Cloudflare, Datadog and Intra-Cellular are on the market. MII 50. Arista, Shopify, Datadog and Cadence Design are on the IBD large cap 20.

Dow Jones Futures Today

Dow Jones futures open Sunday at 6 p.m. ET, along with S&P 500 and Nasdaq 100 futures.

Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading during the next regular trading session.


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Stock market rally

The stock market rally had another strong week, with AI and other tech names leading the way.

The Dow Jones Industrial Average just gained a fraction in last week's stock trading. The S&P 500 index rose 1.4%, surpassing 5,000. The Nasdaq Composite Index jumped 2.3%, briefly surpassing the 16,000 level.

The small-cap Russell 2000 index rebounded 2.4% in a big week after testing key levels. It closed above the key 2,000 level for the first time this year.

As the Nasdaq and Russell 2000 gained momentum late in the week, more stocks issued buy signals. Some had huge revenue gaps, like Palantir, but not all.

Still, the number of buying opportunities remains quite modest, while many of the big leaders are significantly expanded.

This is definitely an AI-led rally. Not only are AI games enjoying big wins, but tech titans are planning big spending to advance artificial intelligence. This bodes well for AI chipsets and software, and these stocks reflect that.

Market leadership is not limited to AI and technology, with real estate, construction and industrial stocks performing well, as well as many names in travel, finance and of health.

However, the Nasdaq is now 6.8% above its 50-day moving average. The technology-heavy composite could expand further, but the risks of a downturn would continue to increase. Many AI leaders are becoming extremely expansive.

The 10-year Treasury yield jumped 16 basis points to 4.19%.

U.S. crude oil futures jumped 6.3% to $76.84 a barrel last week.

AND F

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) increased by 2.9%, with PLTR, UiPath, SPS Commerce and Samsara in IGV. The VanEck Vectors Semiconductor ETF (SMH) jumped 6.6%.

The SPDR S&P Metals and Mining ETF (XME) fell 2% last week. The Global X US Infrastructure Development ETF (PAVE) jumped 2.1%. American World Jets (JETS) increased by 2.9%. SPDR S&P Home Builders (XHB) increased by 2.7%. The Energy Select SPDR ETF (XLE) fell slightly by 0.25%, and the SPDR Health Care Select Sector Fund (XLIV) climbed 1.4%. The Select Industrial Sector SPDR Fund (XLII) increased by 1.2%.

The Financial Select SPDR ETF (XLF) edged up 0.3%, and the SPDR S&P Regional Banking ETF (KRE) fell 1%.

Reflecting stocks with more speculative histories, the ARK Innovation ETF (ARKK) jumped 6.3% last week. ARK Genomics (ARKG) turned to 4.3%. UiPath stock is a top five holding on Cathie Wood's ARK Invest.


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Actions in buying zones

Samsara stock jumped 9.5% for the week to 35.47, rebounding from the 50-day line on Thursday and surpassing a short-term high of 35.13 on Friday. IOT has an official buy point of 36.91, according to MarketSmith analysis.

SPS Commerce jumped 14.8% to 211.08 on Friday, surpassing a flat base buy point of 198.35. At this point, SPSC stock is extended, but investors may be looking for a pullback into the buy zone or perhaps an uptrend or squeeze. On Thursday evening, the supply chain management software company reported that fourth-quarter profits and sales both rose 19%, while offering bullish guidance.

Shift4 stock rose nearly 2% to 77.44 for the week, moving back above a 76.51 buy point. It did not close above the resistance level at 77.51, which would eliminate the bulk of several weeks of tight trading.

UiPath stock jumped 12.4% last week to 26.35, including Friday's 8.2% spike. Cathie Wood stock briefly broke the official buy point of 26.51 on Friday morning. On Thursday, UiPath stock was tradeable off the bounce from the 50-day line and a short-term high of 24.40.

Intra-Cellular Therapies stock advanced 8.2% to 72.77, heading toward a 74.17 buy point. Shares are still trading from a short-term high of 70.15 hit on Thursday.

What to do now on the stock market

In the age of TikTok, patience is a lost art. The market recovery has been going well, but it seems somewhat prolonged. Plus, there aren't many stocks to buy.

You can try incremental purchases, but now is not the time to increase your exposure. Most of the time, it's time to enjoy the ride.

You need to keep running your screens, looking for possible configurations. Prepare your exit strategies.

Read The Big Picture every day to stay in tune with market direction and leading stocks and sectors.

Please follow Ed Carson on the discussions at @edcarson1971X/Twitter at @IBD_ECarson and Bluesky at @edcarson.bsky.social for stock market updates and more.

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