The stock market rally showed some resilience on this day, with the Dow Jones Industrial Average edging higher in Thursday’s trading. The S&P 500 index sank 0.3%, and the Nasdaq composite fell nearly 0.6%. This followed back-to-back losses of more than 1% on the Nasdaq to start 2024. The S&P 500 ended just below its 21-day moving average, while the Russell 2000 hit resistance at the 21-day. The Nasdaq fell for a fifth straight session and is nearing the top of its July-early December range, with the 10-week line just below that. A grim outlook from Mobileye hit auto chip plays, while an Apple downgrade also impacted iPhone chipmakers.
On the bright side, Novo Nordisk stock popped 3.9%, eli Lilly stock fell 0.5%, Spotify stock gained 2.5%, and MercadoLibre stock rose 1.3%. Nvidia also edged up 0.9%, and Tesla dipped 0.2%. Investors are eagerly expecting the December jobs report, scheduled to be released at 8:30 a.m., as well as the expected SEC approval of the first spot Bitcoin ETFs, which are expected to attract a lot more institutional support and approval is anticipated to be granted as soon as Friday. As a result, Bitcoin surged to $44,463.40, and the Dow Jones futures rose 0.1% vs. fair value, continuing to show some positivity after hours.
Despite the positive market rally, the moxie shown by a number of quality stocks making bullish moves is ideally a move in the right direction, but a watchful eye should be kept to see how the market continues to advance in the next several days. A typical day of market trading, including the focus on particular stock movements including fluctuation in indices like Nasdaq, Dow Jones, and S&P 500, is a testament to the little signs of positive hope shown in the market. Ease in yields for the Treasury bond should also be of interest to gauge direction in the coming days. If the market does rev higher, it is advisable for investors to be ready for potential investment opportunities.
