Dow Jones Hits Record High On Fed Rate Outlook, 5 Stocks In Buy Areas; Micron Soars Late

Overnight, Dow Jones futures, S&P 500 futures, and Nasdaq futures all saw modest increases following a positive market reaction to the Fed’s rate-cut outlook. Micron Technology (MU) experienced a surge in earnings, while Microsoft is gearing up for an AI event on Thursday. The stock market rally saw significant gains on Wednesday, with the Nasdaq and small caps leading the way to record highs for the S&P 500 and Dow Jones. Several companies, including Arista Networks (ANET), DraftKings (DKNG), PVH Corp. (PVH), JFrog (FROG), and Royal Caribbean (RCL), showed buy signals. Microsoft reaffirmed its entry ahead of Thursday’s AI event. The Justice Department is reportedly planning to sue Apple (AAPL) for antitrust violations related to the iPhone. Dow Jones futures were slightly above fair value, with Apple stock weighing slightly. Micron reported a surprise profit in the fiscal second quarter, leading to a surge in stock price. Fed policymakers maintained their rate-cut projections for 2024, with Fed Chief Jerome Powell stating that rate cuts should start “at some point this year.” The stock market rally continued into the close, with all-time highs set for the Dow Jones and S&P 500. The Nasdaq also reached a record close, while the small-cap Russell 2000 surged above the 21-day line. The market remains optimistic, but investors should proceed cautiously given the potential for overextension. Various ETFs, including IGV, SMH, ARKK, ARKG, XME, XHB, XLE, XLV, XLI, and XLF, saw gains. Several stocks, including Arista, DraftKings, PVH, JFrog, Royal Caribbean, and Microsoft, showed strength and buy signals. Investors should remain vigilant and stay updated on market trends and leading stocks.



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