Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. Adobe (ADBE) beat views late but guided lower. Oracle (ORCL) gave bullish long-term guidance.
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Nasdaq S&P 500 Extend Win Streaks; Arista Networks, Royal Caribbean, Stride In Focus
The stock market rally continued to rebuild momentum, with the Nasdaq joining the S&P 500 back above the 50-day moving average.
Not coincidentally, Nvidia (NVDA) moved back above its 50-day moving average, offering an aggressive entry.
Meanwhile, Meta Platforms (META), Broadcom (AVGO), Monday.com (MNDY), Sea (SE), Arista Networks (ANET) and Nvidia chipmaker Taiwan Semiconductor (TSM) also are flashing buy signals.
Dow Jones Futures Today
Dow Jones futures edged higher vs. fair value. S&P 500 futures were flat and Nasdaq 100 futures lost a fraction. Oracle and Adobe are big S&P 600 components, with the latter also a Nasdaq 100 giant.
The 10-year Treasury yield dipped to 3.65%.
Crude oil futures rose slightly.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Adobe, Oracle News
After the close, Adobe earnings topped fiscal Q3 views, but the software giant guided slightly lower on Q4. ADBE stock sold off overnight. Shares had climbed 1.1% to 586.55 in Thursday’s regular session, just clearing a 580.55 cup-with-handle buy point.
Meanwhile, Oracle sees annual revenue of at least $104 billion in fiscal 2029, signaling strong cloud infrastructure growth. The software giant also late Thursday guided slightly higher on revenue for fiscal 2026, which starts next June.
Oracle stock rose solidly in late trade. Shares already gapped up 11.4% on Tuesday following strong Oracle earnings for fiscal Q1 2025. ORCL stock has kept rising.
Nvidia stock is on IBD Leaderboard. Nvidia, Monday.com and Arista Networks stock are on the IBD 50. Broadcom stock is on the IBD Big Cap 20. On Holding was Wednesday’s IBD Stock Of The Day. Adobe stock is an S&P 500 and Nasdaq 100 member.
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Stock Market Rally
The stock market rally had a solid session after Wednesday’s positive expectations-breaker rebound. The major indexes, after wavering during the morning, gained ground in the afternoon.
The Dow Jones Industrial Average advanced 0.6% in Thursday’s stock market trading, continuing to find support at its 21-day line. The S&P 500 index gained 0.75%, moving further above its 50-day line. The Nasdaq composite advanced 1%, retaking the 50-day line. The small-cap Russell 2000 gained 1.2%, closing the gap on its 21-day and 50-day lines.
AI and tech growth names are trying to reassert leadership this week after lagging for the past two months. But other sectors are generally holding and advancing as well.
More broadly, leading stocks are acting better than indexes. A large number flashed buy signals Thursday, even before the indexes gained momentum in the afternoon.
U.S. crude oil prices rose 2.5% to $68.97 a barrel.
The 10-year Treasury yield climbed three basis points to 3.68%, still near 52-week lows.
ETFs
Among growth ETFs, The iShares Expanded Tech-Software Sector ETF (IGV) advanced 1.1%. Adobe stock and Oracle are major IGV components. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.2%. Nvidia stock is the top holding in SMH with Taiwan Semiconductor and Broadcom also key members.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rallied 1.7% while the ARK Genomics ETF (ARKG) lost a fraction.
SPDR S&P Metals & Mining ETF (XME) leapt 3.3%. The SPDR S&P Homebuilders ETF (XHB) gained 2.2%. The Energy Select SPDR ETF (XLE) rose 0.9% and the Health Care Select Sector SPDR Fund (XLV) advanced 0.4%.
The Industrial Select Sector SPDR Fund (XLI) was up 0.8%. The Financial Select SPDR ETF (XLF) edged up 0.2%
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Nvidia Stock
Nvidia stock 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 surged 8.1% as CEO Jensen Huang said Nvidia is seeing “incredible” demand. He also said the Blackwell next-generation AI chips are in full production. Nvidia stock has a 131.26 buy point from an ungainly handle. Investors could have used Thursday’s move above the 50-day and breaking the downtrend of the handle as a place to start a position.
Stocks In Buy Zones
Meta stock advanced 2.7% to 525.60. Shares reclaimed the 21-day line after finding support at the 50-day earlier in the week. That, along, with breaking a short downtrend, offers an early entry into Meta. The official buy point remains 542.81, with 544.23 as an alternate entry from a three-weeks-tight pattern.
Broadcom stock popped 4% to 164.56, its fourth straight solid, high-volume gain as it rebounds from the 200-day line after last week’s earnings sell-off. AVGO stock is now clearly above the 50-day line, offering an early entry. The AI chip play has a 185.16 consolidation buy point, according to MarketSurge, with 172.42 as an early entry. Investors also could use a trendline entry around 169.
Arista stock climbed 3.7% to 355.56, clearly above the 50-day line and topping a trendline for an early entry. The AI networking play has a 358.68 buy point from a hard-to-spot handle. Arista Networks is the likely networking partner for Meta Platforms’ huge new AI training cluster using over 100,000 Nvidia H100 GPUs, Evercore ISI said. Arista and Meta have strong ties, Evercore added.
Monday.com stock rallied 3.5% to 258.99, clearly above the 21-day line as it tries to break a short downtrend. On Wednesday, MNDY stock bounced off the 50-day/10-week line after pulling back to the top of several months of trading.
Taiwan Semiconductor stock advanced 1.1% to 171.46, rising a little further above the 50-day line and topping a trendline from the top of the base. The official cup-with-handle buy point is 175.45.
Sea stock climbed 1.5% to 79.13, getting above its 10-day line and a short downward-sloping trendline. That follows several days of trading near the 21-day line and a 76.60 buy point. Investors are still in range of that entry.
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What To Do Now
The stock market rally continues to show encouraging signs, with Nvidia-led Nasdaq joining the S&P 500 above the 50-day line. Even better, a large number of stocks have been flashing buy signals.
So investors should be looking to add exposure gradually. That can continue if the market keeps showing improvement. But be ready to pause or step back if your stocks or the key indexes stumble again.
While AI and tech names are coming on again, many stocks from a variety of sectors are doing well.
So look for that diversity of leadership with your watchlists.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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