The stock market is gearing up for an eventful week ahead as Dow Jones futures, along with S&P 500 and Nasdaq futures, are set to open on Sunday evening. The recent rally in the stock market has been fueled by strong earnings reports, particularly from Nvidia, which has lifted AI plays.
Both the S&P 500 and Dow Jones have reached record highs, with the Nasdaq composite not far behind. Companies such as AMD, Lennar, Manhattan Associates, Microsoft, and MongoDB are all showing potential for action in the coming days. However, investors are being urged to exercise caution when considering new buys, especially with AI stocks appearing to be overstretched.
In the upcoming week, Berkshire Hathaway is scheduled to report their fourth-quarter earnings and disclose any equity buys or sales. This news will likely have an impact on the market and could influence trading activity.
Despite the positive momentum, experts are warning investors to proceed with caution, especially in high-beta AI plays. Stocks such as Nvidia, AMD, Microsoft, and MongoDB are all part of the AI market and are expected to attract attention in the coming days.
The market rally has shown resilience, with major indexes rebounding from their 21-day moving averages. Nvidia in particular saw a surge in stock price following another quarter of strong earnings and guidance.
As Dow Jones futures open on Sunday evening, investors are advised to closely monitor developments in the market and exercise caution when considering new investments. The current market rally shows no signs of slowing down, restricting new buying opportunities for investors.