After last week’s robust gains, sentiment appears to have shifted back to caution, with index futures indicating a slightly lower opening on Monday. Ahead of some key economic data scheduled for the latter part of the week, traders may lack the incentive to further propel stocks higher. However, the upward momentum, particularly in AI-leveraged stocks, could help cushion any potential market downturn. Global cues are negative, with both Asian and European stocks mostly retreating on Monday.
Last Week’s Market Performance:
U.S. stocks concluded the holiday-shortened week ending Feb. 23 on a positive note, buoyed by Nvidia Corp.’s (NASDAQ:NVDA) stellar earnings, which reinforced hopes of continued strong corporate profit growth serving as an upside catalyst for the market.
The Dow Industrials and the S&P 500 Index closed the week at fresh record highs, while the Nasdaq Composite briefly surpassed the 16,000 mark for the first time since Nov. 19, 2021, on Thursday before retreating below that level. If the uptrend resumes, the tech-heavy index could test its all-time high of 16,057.44 reached on Nov. 19, 2021.
Small-cap stocks underperformed amid volatility triggered by earnings releases from these companies.
Reflecting on the week’s movements, fund manager Louis Navellier commented, “It’s been a strong week and a strong month. Following a good earnings season, it’s difficult to see, besides some profit-taking, what will push us off this positive trend.”
Index
Performance (+/-)
Value
Nasdaq Composite
+1.40%
15,996.82
S&P 500 Index
+1.66%
5,088.80
Dow Industrials
+1.30%
39,131.53
Russell 2000
-1.39%
2,016.69
Analyst Color:
Navellier is optimistic about the market’s performance for the remainder of the year. “In the aftermath of stock markets making new highs in America, Europe, and Japan, I expect that the overall stock market will get more narrow and selective as we digest stunning gains,” the fund manager said.
“There is no doubt that 2024 is shaping up to …