Dow Jones futures rose slightly Sunday night, along with S&P 500 futures and Nasdaq futures. Nvidia and AMD stock are in focus.
The stock market saw strong gains across the key indexes. The Nasdaq hit a new high Friday with the S&P 500 not far off, but the Dow Jones, Russell 2000 and some key ETFs faced some resistance. Megacaps as well as AI chip and hardware plays powered higher while software and many other sectors faded late in the week.
Tesla, Google-parent Alphabet and Apple are Magnificent Seven stocks that flashed buy signals Friday.
Nvidia and Advanced Micro Devices have agreed to give the U.S. government 15% of China chip sale revenue, according to The Financial Times and later Bloomberg News. The AI chipmakers reportedly agreed to this arrangement with the Trump administration to secure export licenses for the Chinese market. They obtained those licenses last week.
Google stock and Nvidia are on Leaderboard AMD stock and Google are on SwingTrader. Nvidia stock is on the IBD 50. GOOGL was Friday's IBD Stock Of The Day.
The video embedded in the article reviews the market action over the past week and analyzes a number of stocks, including Google, Apple stock, AppLovin, Shopify and Lam Research.
Dow Jones Futures Today
Dow Jones futures rose 0.25% vs. fair value. S&P 500 futures climbed 0.2%. Nasdaq 100 futures advanced 0.2%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally had broad gains to start the week. Megacaps, AI hardware and some big earnings winners pushed the Nasdaq and S&P 500 higher. But other areas stalled after Monday's rebound.
The Dow Jones Industrial Average rose 1.3% in last week's stock market trading. The S&P 500 index jumped 2.4%. The Nasdaq composite surged 3.9%. The small-cap Russell 2000 popped 2.4%.
The Nasdaq hit a record high Friday, with Google, Apple, Tesla, Nvidia, Arista Networks, AppLovin, Shopify, Robinhood and Palantir Technologies among the contributors.
The Dow Jones and Russell 2000 are hitting resistance at their 21-day moving averages.
So is the Invesco S&P 500 Equal Weight ETF, which gained 0.8% for the week. The First Trust Nasdaq 100 Equal Weighted Index ETF, though up 0.9% for the week, fell back to test its 50-day line
Don't make too much of this divergence yet. One good day and the Dow Jones, RSP and even QQEW would be eyeing record levels.
The 10-year Treasury yield rose six basis points to 4.28%.
U.S. crude oil futures tumbled 5.1% to $63.88 a barrel last week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF popped 3% last week. The iShares Expanded Tech-Software Sector ETF gained 0.9%, but faded back below the 21-day line even with Palantir stock the largest IGV holding and AppLovin also in the ETF. The VanEck Vectors Semiconductor ETF advanced 3.4%, near record highs. Nvidia and AMD stock are major SMH holdings.
ARK Innovation ETF jumped 5% last week and ARK Genomics ETF fell 0.8%. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF ran 9.5% higher last week. SPDR S&P Homebuilders ETF advanced 4.1%. The Energy Select SPDR ETF fell 0.8% and the Health Care Select Sector SPDR Fund declined 0.7%. The Industrial Select Sector SPDR Fund added 0.7%.
The Financial Select SPDR ETF climbed 0.9%.
Best Growth Stocks To Buy And Watch
Megacaps Near Buy Points
Google stock popped 6.5% to 201.42, clearing a 197.95 cup-with-handle buy point on Friday on a weekly MarketSurge chart. On a daily chart, GOOGL topped a 181.23 handle buy point about a month earlier, but 197.95 is still a valid alternate entry. The relative strength line still isn't at highs, but has gained steadily in recent weeks as Google stock outperforms the S&P 500 again.
Apple stock surged 13.3% to 229.35, its best week gain in five years. Shares vaulted above the 50-day line and topping their 200-day line Friday. AAPL also cleared a trendline in a consolidation going back to the end of 2024. Investors could use that as an early entry. The RS line spiked last week but after hitting a multiyear low. The iPhone may be spared crushing tariffs after CEO Tim Cook's new U.S. investment pledge in a gold-gifting visit to President Trump.
Tesla stock surged 8.9% to 329.65 last week, regaining its 50-day and 200-day lines, buoyed by positive Elon Musk comments on self-driving efforts. On Friday, shares flirted with a downward-sloping trendline from the top of the consolidation. A move above Friday's high of 335.15, or the short-term peak of 338, would offer an aggressive entry. TSLA stock has a lot of overhead resistance, while its RS line is weak.
Time The Market With IBD's ETF Market Strategy
What To Do Now
The stock market rally continues to make progress, though it seems to be relying even more on a relatively small number of big caps and megacaps.
Much of the market pausing for a few days around the 21-day line near record highs is normal and could be constructive. But if the divergence intensifies, with broad indexes and ETFs breaking below recent lows, that would be concerning.
Meanwhile, the past couple of weeks have seen a barrage of huge earnings moves from leading stocks. And big opening spikes or dives have often been wiped out reversed. It's important to have rules heading into earnings, and follow them. Also, definitely wait at least a few minutes after the opening bell on earnings movers before pulling the trigger.
The recent sideways action for the market is letting stocks forge handles and other buying opportunities. Have your watchlists up to date.
Earnings season continues, with Cisco Systems, CoreWeave and Sea on tap this coming week. The July consumer price index is due Tuesday, with core inflation expected to tick higher.
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