Dow Jones futures showed little movement overnight, while both S&P 500 and Nasdaq futures experienced a slight uptick. Exciting developments at Tesla’s robotaxi event are capturing attention, with Elon Musk showcasing the futuristic Cybercab.
The implications of the robotaxi could extend beyond Tesla, potentially impacting ride-hailing giants such as Uber Technologies and Lyft. On the previous day, the stock market saw a minor dip amid discussions of a pause in Federal Reserve rate cuts. Nvidia has enjoyed a resurgence, with various technology stocks making encouraging progress.
The market anticipates financial results from JPMorgan Chase, which is set to kick off bank earnings on Friday morning.
Early signs from the Dow Jones futures indicate they are sitting just below fair value, while S&P 500 and Nasdaq 100 futures are showing modest gains. The yield on the 10-year Treasury has dropped to 4.06%, while crude oil futures have pulled back slightly.
It’s essential to note that movement in Dow futures doesn’t always translate to the next trading session in the broader stock market.
As the Tesla robotaxi event unfolds, Musk is present in a two-seat electric vehicle equipped with butterfly doors. His expectations place the cost of the robotaxi at under $30,000; however, this vehicle won’t hit the market until Tesla perfects its Full Self-Driving technology. Musk is likely to reiterate Tesla’s close proximity to achieving autonomous driving, a claim he’s made before.
Tesla plans to ramp up sales and Full Self-Driving take rates in the fourth quarter. The company has enabled owners to transfer Full Self-Driving features to new models until the end of December and is also promoting 0% financing on Model 3 and Y purchases that include Full Self-Driving.
During Thursday’s trading session, Tesla’s shares fell nearly 1% to close at 238.77 after intraday lows of 232.34. The stock’s buy point sits at 264.86, with the 250 level offering an early entry opportunity.
In terms of the stock market rally, it continues to show resilience despite recent inflation data. The Consumer Price Index (CPI) came in higher than expected, and Atlanta Fed President Raphael Bostic hinted at a potential pause in rates in November. Nevertheless, leading indexes remained relatively stable, with the Dow slipping by 0.1%, the S&P 500 falling by 0.2% after hitting a record high the previous day, and the Nasdaq dipping slightly. Small-cap stocks in the Russell 2000 index declined by 0.55% but found support at their 50-day moving average.
A number of leading stocks are exhibiting positive trends, including Samsara, a player in artificial intelligence, as well as cybersecurity firms Palo Alto Networks and Fortinet. Meanwhile, tech stocks such as Astera Labs, Cloudflare, and Datadog are also climbing from their recent lows.
In a more concerning development, ADMA Biologics saw its stock plummet 16%, slicing through its 50-day moving average, as it announced the resignation of its auditor. Other sectors, including insurance, have experienced fluctuations due to Hurricane Milton’s impact.
US crude oil prices have surged by 3.6% to $75.85 a barrel, and the yield on the 10-year Treasury climbed by three basis points to 4.09%, continuing its recent uptrend.
Nvidia, which is featured in prominent investment portfolios, saw its stock rise by 1.6% to 134.81, remaining within the buy range from various entry points, including the August high of 131.26. The company’s executives confirmed to Morgan Stanley analysts that production of their next-generation AI processors, known as Blackwell, is in full swing, with orders for these chips already sold out for the next year.
AMD unveiled its competing Blackwell rival, with production slated to commence by year’s end. CEO Lisa Su forecasted a massive $500 billion market for AI accelerators by 2028, although its stock fell 4% on Thursday amid Nvidia’s continued dominance.
In summary, the stock market rally is holding strong. Investors can consider making incremental buys, and for those holding significant exposure, they might want to offset new purchases by trimming or letting underperforming stocks go. Staying engaged by updating watchlists and reviewing holdings is vital as the market continues to evolve.
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