Stock Market Rally Starts Roughly In 2024
The stock market rally faced a challenging beginning in 2024. Major indexes snapped a nine-week losing streak but found support towards the end of the week. The S&P 500 and leading stocks showed signs of a potential rebound but have yet to make significant progress.
Nvidia (NVDA) rebounded towards the end of the week, moving closely to a buy point amid predictions that the AI chip giant could generate $100 billion in free cash flow in the next two years. Additionally, PulteGroup (PHM), Super Micro Computer (SMCI), Eli Lilly (LLY), MercadoLibre (MELI), and Snowflake (SNOW) also displayed constructive action.
The Securities and Exchange Commission (SEC) is expected to approve the first spot bitcoin ETFs next week, potentially increasing institutional involvement in the crypto market. This comes as the SEC staff reported no issues for spot bitcoin ETF applicants, according to Bloomberg. Notable crypto stocks such as CoinDesk (COIN) and miner Marathon Digital (MARA) have surged in anticipation of a spot ETF.
Meanwhile, the CES tech show and the JPMorgan Healthcare Conference are scheduled for this coming week, alongside the start of earnings season with JPMorgan Chase (JPM), Citigroup (C), and UnitedHealth (UNH) among the big names.
The stock market rally faced its first weekly losses since the end of October, with the Dow Jones Industrial Average falling by 0.6%, the S&P 500 index by 1.5%, and the Nasdaq composite by 3.25%. The 10-year Treasury yield surged to 4.04%, impacting various growth ETFs and speculative stocks.
Nvidia stock, Eli Lilly, MercadoLibre, and Snowflake are among the stocks that showed signs of potential growth in the future. While the market rally has started off on a rough note, potential buying opportunities are emerging, and investors are encouraged to stay engaged with the market to capitalize on these opportunities.
As the market direction and leading stocks continue to evolve, investors are advised to follow trusted analysts for updates and to unlock premium stock lists, tools, and analysis provided by IBD Digital.
Please follow Ed Carson on Threads at @edcarson1971, X/Twitter at
@IBD_ECarson, and Bluesky at @edcarson.bsky.social for stock market updates and more.