Market Rally Boosts Stocks Amid Optimism and Concerns
Stocks saw a notable increase this week, with major exchanges on track for gains of at least 1%. This upward trend began on Tuesday thanks to unexpectedly strong retail sales, and it gained momentum on Wednesday following NVIDIA’s earnings report. Initially, investors reacted negatively to the report but quickly returned to the tech sector, reigniting interest.
Despite ongoing geopolitical tensions, investor confidence is rising, especially with expectations that the Federal Reserve will cut interest rates by 25 basis points in December. However, this optimism has sparked concerns regarding potential inflation. Evidence of this can be seen in the price of Bitcoin, which may approach the significant $100,000 threshold, while gold remains near historic highs.
Next week brings a shortened trading schedule due to the Thanksgiving holiday in the United States, with markets closed on Thursday and early close at 1:00 p.m. on Friday.
Articles by Jea Yu
This week, Jea Yu emphasized that negative reactions to corporate earnings can often be exaggerated. By identifying potential buying opportunities, Yu pointed out two tech stocks that dropped significantly following their earnings reports but may be worth considering for investors looking to buy the dip.
Focusing on the business services sector, Yu highlighted Grab Holdings Inc. (NASDAQ: GRAB) as a strong buy after the company reported its first-ever net profit, matching up with bullish technical indicators.
2024 has marked a year of stock splits for many companies, which, while not altering total stock value, generally attract retail investors, especially during periods of market optimism. With this in mind, Yu explored three stocks likely to split in 2025.
Articles by Thomas Hughes
A major highlight of the week was NVIDIA Corp. (NASDAQ: NVDA), which released its quarterly earnings report on Wednesday. Thomas Hughes closely followed the developments and suggested that investors should maintain positivity regarding the company’s future guidance despite signs of slowing growth.
Another notable player was Snowflake Inc. (NYSE: SNOW), whose stock surged as analysts revised price targets higher after the company exceeded revenue expectations and raised guidance due to its partnership with Anthropic.
The resurgence in tech stocks has offered investors another chance to consider two ‘Magnificent 7’ stocks, which are currently experiencing slight pullbacks yet remain within a positive trend.
Articles by Chris Markoch
Palantir Technologies Inc. (NYSE: PLTR) saw its stock rise after announcing a move to the NASDAQ. Chris Markoch elaborated on the implications of this shift, indicating that this high-priced stock could still have significant potential for growth.
Markoch also reported on the uptick in Tesla Inc. (NASDAQ: TSLA) shares, noting that renewed interest in federal autonomous driving regulations under the incoming Trump administration has made Tesla stock a worthwhile investment.
Looking ahead, next year could be pivotal for copper as demand may rise. Markoch suggests that Freeport-McMoRan Inc. (NYSE: FCX) could emerge as a strong performer within this space.
Articles by Ryan Hasson
In a week where FOMO could easily take hold, Ryan Hasson reminded long-term investors of solid options. This week, he highlighted five dividend ETFs that offer broad market access, high yields, and a focus on defensive stocks.
In the biotech arena, Hasson noted a drop in one leading biotech ETF, which raises concerns about the sector’s long-term health due to influences like regulatory uncertainty.
Articles by Gabriel Osorio-Mazilli
Could we finally see a rally in oil prices? Gabriel Osorio-Mazilli discussed signs that suggest a positive shift may be underway. He listed three oil stocks that might provide varied but promising investment narratives.
An increase in oil prices might impact other sectors, particularly international shipping. Osorio-Mazilli pointed out three shipping stocks poised to benefit from higher oil costs.
Additionally, he delved into the recent surge in cryptocurrency, noting that as Bitcoin nears $100,000, investors are looking for ways to participate in this trend. He recommended MicroStrategy Inc. (NASDAQ: MSTR) and Coinbase Global Inc. (NASDAQ: COIN) as avenues for exposure without directly holding digital currencies.
Articles by Leo Miller
The chip market remains a vital area to watch as we move towards 2025. While stocks like NVIDIA often dominate conversations, Leo Miller pointed out several chip companies that also offer strong dividend prospects. Importantly, Miller noted that these companies have raised their dividends recently.
Monolithic Power Systems Inc. (NASDAQ: MPWR) may not be a familiar name, yet its products are essential across the chip industry. Despite current pressures regarding growth, Miller believes these worries are overstated, potentially signaling a significant buying opportunity.
A continuation of this focus is found in robotics stocks, particularly Symbiotic Inc. (NASDAQ: SYM), which has increased more than 50% since its August earnings report. Miller argues that SYM still holds further upside in 2025.
Articles by Nathan Reiff
Oil and housing sectors are anticipated to lead economic recovery efforts. This week, Nathan Reiff highlighted investing options for both. He recommended three lesser-known oil stocks that appear undervalued given their potential growth.
The housing market, meanwhile, is impacted heavily by interest rates. Reiff examined three homebuilder stocks that investors should consider now for potential growth in 2025 as lower rates enhance construction feasibility.
This end-of-year period prompts many investors to reassess their portfolios amid uncertainty regarding possible changes under the Trump administration. As a response, high-yield dividend stocks can serve as a solid refuge, leading Reiff to propose three high-yield options worth consideration.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
