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Dow Jones Futures: Dovish Fed, Nvidia-Led AI Boom Keep Driving Stock


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Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, after the major indexes had strong weekly gains, hitting all-time highs.




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Sometimes, the stock market is fairly simple. Two broad factors have driven the market rally since the end of October: Expectations of Fed rate cuts and the ongoing artificial intelligence boom.

In the past week, the Federal Reserve reaffirmed projections to cut rates three times in 2024. Meanwhile, Nvidia (NVDA), Broadcom (AVGO) and Microsoft (MSFT) had upbeat AI events, while Micron Technology (MU) reported a surprise profit and strong guidance thanks to AI tailwinds.

Nvidia, Broadcom and Micron stock had big weekly gains, along with a number of other AI plays. Microsoft stock had a modest gain to new highs, but is still actionable.

But there was broad-based strength, with many sectors enjoying big gains while a diverse group of stocks flashed buy signals, including financials.

Uber Technologies (UBER), Eli Lilly (LLY), CrowdStrike Holdings (CRWD) are leading stocks setting up in messy consolidations.

Investors can still take advantage of some actionable names using incremental buys, perhaps looking beyond extended AI leaders like Nvidia stock.

Nvidia and Uber stock are on IBD Leaderboard. Microsoft stock is on IBD Long-Term Leaders. Nvidia and CrowdStrike stock are on the IBD 50. Broadcom stock, CrowdStrike and Nvidia are on the IBD Big Cap 20 list. Uber was Friday’s IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

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 a strong week on a dovish Fed and bullish AI prospects. The major indexes rose strongly, all hitting record highs, though they backed off Thursday’s intraday highs.

The Dow Jones Industrial Average gained 2% in last week’s stock market trading. The S&P 500 index popped 2.3%. The Nasdaq composite jumped 2.85%.

The small-cap Russell 2000 rose 1.6%, hitting a 23-month closing high Thursday before pulling back Friday.

The Nasdaq decisively cleared trading going back to early February, while the Russell 2000 is back above a range from late December to the end of February. That meant that a number of leading stocks broke out or flashed other buy signals.

Meanwhile, the S&P 500 and Nasdaq are not extended from the 50-day line, though it wouldn’t take much for that to happen.

Nvidia and other big AI stocks like Micron, Broadcom and Microsoft buoyed the major indexes somewhat.

The 10-year Treasury yield fell 9 basis points to 4.22%, retreating after nearly hitting 2024 highs on Monday.

U.S. crude oil futures rose 5 cents to $80.63 a barrel last week, backing off from 2024 highs

ETFs

Among growth ETFs,…



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