The Nasdaq Composite is facing a potential bearish “outside day” as it struggles to maintain its momentum, with giants like NVIDIA, Cadence Design Systems, and Intuitive Surgical hitting all-time highs before turning negative. This shift in the tech-heavy index comes after a seven-day winning streak, its longest since December.
Meanwhile, Nvidia has surpassed Microsoft to become the biggest tech giant, with its market cap now exceeding the total value of stock markets in France, Germany, and the U.K. According to Deutsche Bank, Nvidia’s market cap is only smaller than India, Japan, China, and the U.S.
In other news, JPMorgan notes that lower levels of short selling in major averages have helped fuel the current bull market run, with short interest in the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust declining steadily over the past year.
However, RBC Capital Markets’ Lori Calvasina warns that investors expecting a small-cap stock comeback may be disappointed, as the market may not react as expected to Fed actions.
The energy sector outperformed the broader market, with stocks like Hess, Exxon Mobil, and Marathon Petroleum seeing gains, while the tech sector led declines, with companies like Enphase Energy and Jabil falling.
Overall, the stock market is showing mixed signals, with some stocks hitting new highs in the S&P 500, while others are hitting new lows. Investors are closely watching economic data releases, including jobless claims, housing starts, and manufacturing surveys, to gauge the health of the market.
