Dow Jones futures edged higher early Tuesday, along with S&P 500 futures and Nasdaq futures. Tesla and AppLovin were in focus.
The stock market rally was generally positive Monday. The Dow Jones fell slightly but the Nasdaq and small-cap Russell 2000 hit record highs while the S&P 500 set a closing best.
Advanced Micro Devices surged on a big OpenAI deal, lifting Taiwan Semiconductor, Astera Labs and more, though Nvidia dipped.
Palantir Technologies rebounded Monday.
Tesla also bounced. Overnight, the EV giant released its latest self-driving software to some users overnight and with more big news coming Tuesday.
AppLovin turned higher before the open after diving Monday on a reported SEC probe.
Dow Jones Futures Today
Dow Jones futures edged up vs. fair value. S&P 500 futures tilted higher and Nasdaq 100 futures rose 0.1%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally saw AI stocks and small caps lead once again.
The Dow Jones Industrial Average dipped 0.1% in Monday's stock market trading. The S&P 500 index climbed 0.4%,. The Nasdaq composite rose 0.7%. The small-cap Russell 2000 closed up 0.4%.
In addition to AMD-related gains, Tesla and Palantir, crypto, nuclear and some other speculative plays had strong sessions. Gold continued to shine.
DoorDash made a bullish move within a buy zone. Emcor broke out.
U.S. crude oil prices rose 1.3% to $61.69 a barrel after OPEC+ on Sunday raised output by less than expected.
The 10-year Treasury yield rose four basis points to 4.16%.
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ETFs
Among growth ETFs, the Innovator IBD 50 ETF jumped 2.5%. The iShares Expanded Tech-Software Sector ETF gained 0.7%, with Palantir the biggest component and AppLovin stock a key holding. The VanEck Vectors Semiconductor ETF rallied 2%. AMD stock is a big SMH holding, though not as large as Nvidia and Taiwan Semiconductor.
ARK Innovation ETF jumped 3.7% and ARK Genomics ETF rose 1.2%. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF advanced 0.7%. SPDR S&P Homebuilders ETF slumped 2.05%. The Energy Select SPDR ETF and Industrial Select Sector SPDR Fund were both up 0.5% while the Health Care Select Sector SPDR Fund declined 0.5%. The Financial Select SPDR ETF lost a fraction
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Tesla Releases FSD v14, Cheap Model Y On Tap?
Early Tuesday, Tesla rolled out Tesla Full Self-Driving v14 to a select group of users, including influencers. Social media already is getting short video clips with Tesla owners gushing about the latest driver-assist software. But it may be weeks before there's even a rough idea at how well FSD v14 compares to v13, or how far it has to go.
Meanwhile the EV giant on Sunday teased a Tuesday announcement, raising chatter that it could be the stripped-down Model Y. The price will be key for demand, margins and cannibalization vs. the regular Model Y and 3. The end of U.S. tax credits complicates that dynamic in America.
Tesla shares edged lower before the open.
On Monday, Tesla stock bounced 5.45% to 453.25 in anticipation of the upcoming news. Shares hit a 2025 peak of 470.75 intraday Thursday but reversed lower in a sell-the-news reaction to record deliveries.
AppLovin Tries To Bounce After SEC Dive
AppLovin stock rose slightly before Tuesday's open after trading lower overnight. APP stock plunged 14.1% on Monday, knifing through its 21-day. The SEC is probing the mobile-ad tech firm's data collection practices, Bloomberg reported Monday afternoon.
AMD Spikes On OpenAI Deal
OpenAI will buy tens of billions of dollars worth of AI chips from AMD, which issued the AI startup a warrant for up to 160 million shares.
AMD stock spiked 23.7% to 203.71 on Monday. Intraday, shares nearly topped the March 2024 all-time high of 227.30.
AMD partner Sanmina jumped 22.7% to a new high. Astera Labs stock leaped 10%.
Nvidia stock fell 1.1% to 185.51, but held a 184.48 flat-base buy point. Nvidia and OpenAI announced a big deal in late September.
Taiwan Semiconductor, which makes chips for AMD, Nvidia and Astera Labs, rose 3.5% to a new high. TSMC reports September sales on Thursday.
OpenAI also held its DevDay developers event, with CEO Sam Altman touting 800 million weekly ChatGPT users.
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Palantir Stock
Palantir stock gained 3.7% to 179.53, back above its 21-day line. Shares tumbled Friday, triggering the 7%-8% sell rule from a 185.75 cup-with-handle buy point, on a report of a flawed Army communications network. Late Friday, the tech giant fired back at that report. Investors could still use 185.75 as an entry.
What To Do Now
The stock market rally continues to do well. Investors should be heavily invested and looking for opportunities to boost exposure or replace laggards.
So work on those watchlists. Also have your exit strategies ready. Extended growth stocks can fall back in a hurry, especially if the broader market retreats.
Palantir, DoorDash, Emcor and AppLovin stock are on Leaderboard, with Tesla on the Leaderboard watchlist. DoorDash stock is on SwingTrader. Taiwan Semiconductor, Astera Labs, AppLovin, Emcorand Palantir and are on the IBD 50. Palantir stock, Nvidia and Emcor are on the IBD Big Cap 20. Nvidia stock and Palantir are on IBD Sector Leaders.
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