Markets on the Move: Dow and S&P 500 Touch Record Highs, Tech Giants Adjust Course

Stock Market Overview: A Week of Records and Realignments

The past week in the stock market has been a rollercoaster of highs and lows, leaving traders and investors with much to consider as they prepare for the upcoming week. The Dow Jones Industrial Average and the S&P 500 index both touched record highs, signaling a robust phase for the markets. This achievement came amidst a holiday-shortened week, where growth stocks witnessed some fallbacks.

Tech Giants and Growth Stocks: A Mixed Bag

In the realm of technology, there's been a notable ebb and flow. Nvidia (NVDA) is finding its footing, having retreated but remaining resilient above critical support levels. Other tech stalwarts like Microsoft (MSFT), Meta Platforms (META), and CrowdStrike (CRWD) also experienced pullbacks but in a manner that indicates bullish undercurrents for these tech leaders. Meanwhile, the newcomer in AI chip sector, Astera Labs (ALAB), is receding from its Tuesday high, possibly setting the stage for a short IPO base formation.

China EV Makers and Tesla's Anticipated Reports

The electric vehicle (EV) sector is also bustling with activity, with Chinese EV manufacturers like Nio (NIO), Li Auto (LI), and XPeng (XPEV) poised to release their March and first-quarter delivery reports. BYD (BYDDF) is expected to reveal a significant rebound in March. All eyes are on Tesla (TSLA), with the market anticipating its first-quarter deliveries, particularly as expectations have been tempered recently.

Economic Indicators and Futures Outlook

On the economic front, U.S. markets, along with European and Hong Kong markets, observed Good Friday, with closures extending to Easter Monday for some. The focus now shifts to Dow Jones futures, which will reopen Sunday evening along with S&P 500 and Nasdaq futures. Investors are keenly waiting to gauge the market's reaction to the Federal Reserve's preferred inflation report, the Personal Consumption Expenditures (PCE) Price Index. This index showed a 0.3% increase in February, aligning with forecasts and keeping the possibility of a June Fed rate cut on the table.

ETF and Sector Movements

In the ETF space, there was a varied performance with the iShares Expanded Tech-Software Sector ETF (IGV) and the VanEck Vectors Semiconductor ETF (SMH) witnessing declines. On the brighter side, ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) saw upward movements. Industrial, Financial, Homebuilders, Metals & Mining, Jets, and Energy sector ETFs all showed positive trends, with many reaching new heights.

Closing Thoughts

As we step into a new week, the stock market presents a canvas of mixed signals. The resilience of major indices like the Dow Jones and S&P 500, juxtaposed with the realignments in the tech sector and the EV market, paint a picture of a market in transition. For traders and investors, these movements offer both challenges and opportunities, making it essential to stay informed and agile in their strategies. With the looming impact of the PCE inflation data and other economic indicators, the market's next moves are eagerly awaited.