The stock market rally exhibited robust and widespread activity in the previous week, surpassing expectations despite the Federal Reserve’s unexpectedly hawkish stance. This development instills confidence in the long-term prospects of the uptrend. However, given the extended nature of the Nasdaq, there is a heightened likelihood of a market pullback in the near term. Although Friday’s performance hinted at a potential decline, it was rather insignificant.
Evaluating Buying Opportunities Amid Potential Pullback
A pullback in the market could potentially create new opportunities for purchasing leading stocks, particularly those that are currently significantly above any potential entry points. Nevertheless, caution is advised for investors considering new acquisitions, especially within the thriving technology sector.
Promising Prospects for BA Stock
BA stock is currently trading in the proximity of a buy point. The Paris Air Show, which commenced on Sunday, is likely to witness Boeing (BA) and its competitor Airbus (EADSY) announcing a multitude of new orders. McKesson (MCK) recently broke out of a consolidation phase, while Smith & Nephew (SNN) has surpassed a trendline entry. Marriott International (MAR), Chipotle Mexican Grill (CMG), Boyd Gaming (BYD), and Floor & Decor (FND) are nearing buy points. Notably, all seven stocks mentioned belong to non-tech segments of market leadership.
Select Stocks Experience Pullback, Others Maintain Strong Performance
Meanwhile, Advanced Micro Devices (AMD), Samsara (IOT), and Rambus (RMBS) are three hot stocks that are currently experiencing a slight pullback. Nonetheless, numerous leaders in the market are not retreating. Nvidia (NVDA) achieved a fresh record high on Friday, with a notable 10% surge for the week. Meta Platforms (META) reached its highest point in 16 months before closing marginally lower on Friday. Tesla (TSLA), following two minor losses that ended a record 13-day winning streak, ascended to an eight-month high on Friday.
Tesla, META stock, and Nvidia are listed on the IBD Leaderboard, while CMG stock is included in the Leaderboard watchlist. MCK stock was recently added to SwingTrader, joining Boeing and FND stock. Chipotle and IOT stock are featured on the IBD 50. Additionally, Chipotle and Tesla stock are part of the IBD Big Cap 20. McKesson was designated as Friday’s IBD Stock of the Day.
Summary of the Stock Market Rally
The stock market rally experienced a strong week, particularly evident in the Nasdaq’s performance, despite relatively minor losses on Friday. The Dow Jones Industrial Average exhibited a 1.25% increase in last week’s stock market trading, reaching its highest levels of the year. The S&P 500 index recorded a notable jump of 2.6%, marking its most substantial weekly gain since March. Meanwhile, the Nasdaq composite demonstrated an impressive leap of 3.25%, extending its streak of weekly advances to eight. The small-cap Russell 2000 experienced a more modest climb of 0.5%, remaining below its weekly highs.
Other market indicators included a 2-basis-point rise in the 10-year Treasury yield, reaching 3.77%. Furthermore, U.S. crude oil futures observed a 2.3% increase, settling at $71.78 per barrel during the previous week. Additionally, copper prices experienced a 2.5% climb.
