Nasdaq 100, Dow Jones, S&P 500 News: Tech Giants Fuel Market Recovery, Retail Stocks Jump

Stocks Strive for Recovery Amidst Challenges

Thursday saw a notable rebound in the stock market as traders sought to recover from the recent consecutive losses experienced by the Dow. Despite this resurgence, the overall trend for the week remained bearish, with all three major indexes – the Dow, S&P 500, and Nasdaq Composite – poised for a weekly downturn.

At 15:13 GMT, the Dow Jones Industrial Average is trading 39246.50, up 119.36 or +0.31%. The S&P 500 Index is at 5242.19, 30.70 or +0.59% and the Nasdaq Composite is trading 16402.76, up 125.30 or +0.77%.

Big Tech Leads Partial Comeback

Significant movements in major tech stocks marked Thursday’s trading session. Notably, Nvidia and Meta saw their shares climb by 1.5% and over 2.5%, respectively. Microsoft also experienced a 1.3% increase. In the retail sector, Levi Strauss & Co stood out, with shares skyrocketing by more than 16% after surpassing first-quarter expectations and raising their full-year profit guidance. Wayfair and Intuitive Machines also posted strong gains, buoyed by an analyst upgrade and a lucrative NASA contract, respectively.

Jobless Claims and Trade Deficit Rise

Economic reports presented a mixed picture. Jobless claims unexpectedly surged to their highest level since late January, while the trade deficit expanded beyond forecasts. This rise in the trade deficit to $68.9 billion in February, a record since April 2023, suggests an imbalance in the economic landscape.

Investors Eye Treasury Yields Amid Economic Uncertainty

The 10-year Treasury yield dipped slightly, reflecting investors’ reactions to the latest jobless claims and their anticipation of the upcoming nonfarm payrolls report. The yield, a crucial indicator for market sentiment, suggests a cautious approach by investors, especially in light of Federal Reserve Chair Jerome Powell’s recent comments on interest rates.

Short-Term Market Forecast: Market Valuation Raises Concerns

Despite the day’s gains, the broader market context raises concerns. The S&P 500’s valuation, notably higher than its long-term average, hints at potential overvaluation. Powell’s stance on interest rates further fuels investor uncertainty, diminishing expectations for rate cuts in the near future. Consequently, the market outlook remains cautious, with signs pointing towards a potential recalibration of recent gains and a bearish sentiment in the short term.

Technical Analysis

E-mini Dow Futures are edging higher on Thursday, slightly above the 50-day moving average at 39327. This indicator is controlling the intermediate trend.

A failure to hold the 50-day moving average will signal a significant shift in investor sentiment. Traders should pay close attention to trader reaction of this major indicator.