Dow Jones futures saw a slight increase overnight, with S&P 500 futures and Nasdaq futures also rising slightly. Chipmaker Taiwan Semiconductor (TSM) is set to report early Thursday, which could have significant implications for the chip sector. The stock market rally started off slightly higher but quickly turned lower, with the Nasdaq leading the decline. Chip stocks, in particular, suffered losses on Wednesday due to disappointing results and guidance from ASML, as well as caution ahead of Taiwan Semi’s earnings.
Nvidia, Broadcom, and Arm Holdings all experienced losses, while chip-gear makers like ASML, Applied Materials, Lam Research, and KLA Corp. also saw declines. Tesla fell slightly to 2024 lows, with Ark Invest continuing to buy TSLA shares. The market’s character has shifted, with Nvidia stock on IBD Leaderboard and KLAC stock on the IBD Long-Term Leaders list.
In the futures market, Dow Jones futures were slightly higher, with S&P 500 futures up 0.1% and Nasdaq 100 futures rising 0.3%. It’s important to note that overnight futures activity may not reflect actual trading in the upcoming stock market session. The stock market rally continues to face pressure, with major indexes like the Dow Jones, S&P 500, and Nasdaq all experiencing losses.
Taiwan Semiconductor’s earnings are eagerly awaited, as the company reported strong Q1 sales fueled by high-end AI chips. Nvidia, Apple, and Broadcom are among the companies that rely on TSM for chip production. AI chip stocks like Nvidia, Broadcom, and Arm are struggling, with Nvidia stock falling below key moving averages. Tesla stock also saw a decline, with earnings on the horizon and important decisions to be made.
Overall, the stock market is facing challenges, with major indexes breaking below key moving averages. Investors should be cautious and focus on stocks showing relative strength. Stay informed by following market updates and analysis to navigate these uncertain times.
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