U.S. Stock Futures Mixed as Nvidia Surges: Market Rally Remains Mixed

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U.S. Stock Futures Mixed Amid Memorial Day Closure: Nvidia Soars, Market Rally Shows Mixed Performan

Team FS

27/May/2024

Key Points:

1: U.S. stock futures show mixed performance as markets close for Memorial Day, with Nvidia's soaring contrasted against mixed market performance last week.

2: Despite Nasdaq hitting record highs, Dow Jones and Russell 2000 faced losses, reflecting weakness in consumer, housing, commodity, and software sectors.

3: Sector-specific ETFs display varied performances, with tech-focused ETFs like SMH surging, while commodity-focused ETFs like XLE skid.

U.S. stock futures edged lower Monday morning, while S&P 500 futures and Nasdaq futures rose slightly. U.S. markets are closed for Memorial Day. The stock market rally had a mixed week, despite Nvidia (NVDA) soaring on booming earnings and guidance. The Nasdaq hit a record high, shrugging off Thursday's ugly downside reversal. The S&P 500 was little changed after briefly marking all-time high levels. The Dow Jones and Russell 2000 had solid losses as consumer, housing, commodity, and software names struggled. Dow Jones futures lost a fraction vs. fair value. S&P 500 futures edged higher and Nasdaq 100 futures rose 0.2%.

U.S. stock markets are closed Monday in observance of Memorial Day, but other exchanges around the world were open.

Crude oil futures rose slightly.

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session. The stock market rally had a mixed week, with Nvidia and, to a lesser extent, Microsoft lifting the Nasdaq. But there was weakness in much of the market.

The Dow Jones Industrial Average tumbled 2.3% in last week's stock market trading. The S&P 500 index closed fractionally higher after briefly hitting a record high Thursday.

The Nasdaq composite rose 1.4%, its fifth straight weekly gain as it set all-time record levels. The tech-heavy index bounced back on Friday to a record close, but it was an inside day to Thursday's downside reversal.

Market breadth was weak, with many sectors slumping as well as a number of leading stocks. While Nvidia stock soared, other AI stocks were little changed or declined. That said, many stocks are working or setting up, just not as plentiful as a week earlier.

The small-cap Russell 2000 fell 1.2%, testing the 50-day line on Thursday.

The Invesco S&P 500 Equal Weight ETF (RSP) slumped 1.25%, also testing the 50-day line on Thursday.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) edged up 0.2%, lagging the Nasdaq 100's 1.4% gain.

The 10-year Treasury yield rose five basis points to 4.47% for the week.

U.S. crude oil futures fell 2.3% to $77.72 a barrel last week, but did rise 1.1% on Friday.

ETFs Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) fell 1.6%. Microsoft stock is a huge IGV holding. The VanEck Vectors Semiconductor ETF (SMH) surged 6.1%, with NVDA stock the dominant member.

SPDR S&P Metals & Mining ETF (XME) fell 1% last week. The Global X U.S. Infrastructure Development ETF (PAVE) edged up 0.3%. U.S. Global Jets ETF (JETS) sank 3.4%. SPDR S&P Homebuilders ETF (XHB) declined 1.9%. The Energy Select SPDR ETF (XLE) skidded 3.8%.

The Health Care Select Sector SPDR Fund (XLV) fell 1.3%, even with Eli Lilly stock a major XLV holding. The Industrial Select Sector SPDR Fund (XLI) dipped 0.7%

The Financial Select SPDR ETF (XLF) declined 2.1%

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) retreated 2.2%% last week and ARK Genomics ETF (ARKG) slumped 3.4%.

Also Read : Indian Stock Market Closes Flat Amid Profit Booking After Record Highs

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U.S. Stock Futures Mixed Amid Memorial Day Closure: Nvidia Soars, Market Rally Shows Mixed Performan

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