Dow Jones futures rose slightly Friday morning, as did S&P 500 futures and Nasdaq futures. Adobe (ADBE) beat expectations in the closing stages, but forecast a lower outlook. Oracle (ORCL) gave an optimistic long-term forecast. Boeing (BA) workers went on strike.
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Nasdaq S&P 500 Extends Winning Streak; Arista Networks, Royal Caribbean, Stride In Focus
The stock market rally continued to gain momentum, with the Nasdaq, like the S&P 500, breaking above its 50-day moving average.
It is no coincidence that Nvidia (NVDA) rose back above its 50-day moving average, allowing for an aggressive entry.
In the meantime, Meta platforms (META-) Broadcom (AVGO), Monday.com (MNDY), Sea (LIKE THIS), Arista Networks (ANET) and Nvidia chipmaker Taiwanese semiconductor (TSM) also give buy signals.
Dow Jones Futures Today
Dow Jones futures rose 0.2% from fair value despite the decline in Boeing shares. S&P 500 futures rose 0.25% and Nasdaq 100 futures rose 0.1%. Oracle and Adobe are major S&P 600 components, with the latter also a Nasdaq 100 giant.
The yield on 10-year government bonds fell to 3.66%.
Crude oil futures rose 1%.
Please note that trading Dow futures and other markets overnight does not necessarily result in actual trading during the next regular trading session.
Adobe, Oracle, Boeing News
After the close, Adobe beat fiscal Q3 expectations, but the software giant gave a slightly lower outlook for Q4. ADBE shares sold off early Friday. Shares were up 1.1% Thursday to 586.55, just shy of a 580.55 cup-with-handle buy point.
Meanwhile, Oracle expects annual revenue of at least $104 billion in fiscal 2029, pointing to strong growth in cloud infrastructure. The software giant also gave a slightly higher revenue forecast Thursday night for fiscal 2026, which begins next June.
Oracle shares rose sharply in overnight trading. Shares were up 11.4% on Tuesday after Oracle reported strong earnings for fiscal Q1 2025. ORCL shares continued to rise.
Early Friday, more than 30,000 Boeing workers went on strike, halting production of most planes. Boeing shares fell sharply before the open.
Nvidia shares are on the IBD Leaderboard. Nvidia, Monday.com and Arista Networks shares are on the IBD 50. Broadcom shares are on the IBD Big Cap 20. On Holding was Wednesday’s IBD Stock Of The Day. Adobe shares are an S&P 500 and Nasdaq 100 member.
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Rally on the stock market
The stock market rally had a solid session after Wednesday’s positive expectation-breaker rebound. The major indexes, after faltering in the morning, gained ground in the afternoon.
The Dow Jones Industrial Average rose 0.6% in stock trading Thursday, finding support at its 21-day line. The S&P 500 index rose 0.75%, moving above its 50-day line. The Nasdaq Composite rose 1%, reclaiming its 50-day line. The small-cap Russell 2000 rose 1.2%, narrowing the gap at its 21-day and 50-day lines.
AI and tech growth names are trying to regain leadership this week after lagging the past two months. But other sectors are generally holding their ground and advancing as well.
More broadly, leading stocks are outperforming indexes, with many giving buy signals on Thursday even before the indexes gained momentum in the afternoon.
US crude oil prices rose 2.5% to $68.97 a barrel.
The 10-year US Treasury yield rose three basis points to 3.68%, still close to a 52-week low.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 1.1%. Adobe shares and Oracle are major IGV constituents. The VanEck Vectors Semiconductor ETF (SMH) rose 0.2%. Nvidia shares are the largest holding in SMH, with Taiwan Semiconductor and Broadcom also notable members.
The ARK Innovation ETF (ARKK) rose 1.7%, while the ARK Genomics ETF (ARKG) fell a fraction, reflecting the more speculative stocks.
SPDR S&P Metals & Mining ETF (XME) rose 3.3%. The SPDR S&P Homebuilders ETF (XHB) rose 2.2%. The Energy Select SPDR ETF (XLE) rose 0.9% and the Health Care Select Sector SPDR Fund (XLV) rose 0.4%.
The Industrial Select Sector SPDR Fund (XLI) rose 0.8%. The Financial Select SPDR ETF (XLF) rose slightly by 0.2%.
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Nvidia stock
Nvidia shares rose 2.1% to 119.32, closing above its 50-day line for the first time since reporting earnings on Aug. 28. That comes a day after it rose 8.1% as CEO Jensen Huang said Nvidia is seeing “incredible” demand. He also said Blackwell’s next-generation AI chips are in full production. Nvidia shares have a buy point of 131.26 from an awkward handle. Investors could have used Thursday’s move above the 50-day line and the breakout of the handle’s downtrend as a place to initiate a position.
Stocks in buy zones
Meta shares rose 2.7% to 525.60. Shares reclaimed the 21-day line after finding support at the 50-day earlier in the week. That, coupled with a breakout of a short-term downtrend, offers an early entry into Meta. The official buy point remains 542.81, with 544.23 as an alternative entry from a tight three-week pattern.
Broadcom shares rose 4% to 164.56, its fourth solid, high-volume gain in a row as it recovers from its 200-day line after last week’s earnings sell-off. AVGO shares are now well above its 50-day line, offering an early entry. The AI chip play has a 185.16 consolidation buy point, according to MarketSurge, with 172.42 an early entry. Investors could also take a trendline entry around 169.
Arista shares rose 3.7% to 355.56, well above the 50-day line and at the top of a trend line for an early entry. AI networking activity has a buy point of 358.68 from a hard-to-find handle. Arista Networks is the likely networking partner for Meta Platforms’ massive new AI training cluster with more than 100,000 Nvidia H100 GPUs, Evercore ISI said. Arista and Meta have strong ties, Evercore added.
Monday.com shares rose 3.5% to 258.99, well above its 21-day line as it attempts to break a short-term downtrend. On Wednesday, MNDY shares bounced off its 50-day/10-week line after falling back to the highs after several months of trading.
Taiwan Semiconductor shares rose 1.1% to 171.46, a bit further above the 50-day line and a trend line from the top of the base. The official buy point for cup-with-handle is 175.45.
Sea stock climbed 1.5% to 79.13, breaking above the 10-day line and a short downward trendline. That follows several days of trading near the 21-day line and a 76.60 buy point. Investors are still within range of that entry.
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What to do now
The stock market rally continues to show encouraging signs, with the Nvidia-led Nasdaq joining the S&P 500 above its 50-day line. Even better, a slew of stocks have been sending out buy signals.
So investors should gradually build more exposure. This can continue if the market continues to improve. But be prepared to pause or step back if your stocks or the major indices stumble again.
As names in AI and technology regain popularity, many stocks across sectors are doing well.
So look for that diversity in leadership in your watchlists.
Read The Big Picture every day to stay up to date on market developments and the most important stocks and sectors.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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