Thursday morning stock markets will lean on Nvidia (NVDA) to continue testing all-time highs. While technology stock enthusiasts are watching for Microsoft (MSFT) to retake the biggest company title, mixed performance in the broader market is a growing concern.
Automotive stocks like Stellantis (STLA), Toyota Motor (TM), and Honda (HMC) are trading sharply below their 52-week high. Conversely, General Motors (GM) is close to a high for the year. GM has a healthy diversification in automobile types, from gas-powered to trucks to electric vehicles.
Nvidia’s stock rise also exaggerated the market’s optimistic reaction to companies posting modest quarterly earnings. For example, Hewlett Packard Enterprise (HPE) broke out above $20 in recent trading sessions despite posting weak revenue growth.
Analysts speculate that downstream technology firms benefit from artificial intelligence hardware and software suppliers. For example, markets are guessing that Salesforce (CRM), Snowflake (SNOW), and Palantir (PLTR) will benefit from the AI boom. However, Palantir has the strongest prospects because it is developing AI-powered solutions for the military industry.
For the rest of this week, watch the market’s reaction to initial jobless claims, housing starts, and U.S. building permits data released this morning. Higher jobless claims would boost stock markets and increase U.S. treasury bond yields. A weak jobless claim report and strong building activity would hurt the S&P 500 (SPY).
