Stock market futures fell modestly Thursday morning as the Christmas holiday marked a brief pause in trading. Despite this, the stock market rally remained strong, with the Nasdaq leading the way.
The Nasdaq composite jumped 1.35% on Tuesday, its third consecutive session of gains, as it moved back toward record highs. The S&P 500 index also rose 1.1%, moving above the 6,000 level, while the Dow Jones Industrial Average climbed 0.9%.
Nvidia, an AI chip giant, flashed a buy signal on Tuesday after clearing key levels but came off intraday highs. Fellow AI chip stocks Broadcom and Astera Labs continued to soar.
Tesla rose strongly on Tuesday, extending Monday’s bounce after a modest pullback, while China hotel operator Atour Lifestyle Holdings flirted with a buy point before closing just below the entry.
The 10-year Treasury yield rose to 4.63%, its highest level in nearly six months. However, the rally remains solid, despite some concerns about market divergence and the impact of rising yields on smaller stocks.
Investors should focus on areas of strength, such as AI plays and travel stocks, while being cautious about market divergence. With many megacaps like Tesla and Broadcom propping up the Nasdaq and S&P 500, it’s essential to pick the right stocks in a stock picker’s market.
Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-santa-claus-rally-tesla-surges-nvidia-buy-point