Next Day Prep: Fed Signals Fuel Tech Surge December Cut Imminent
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Yesterday saw a solid start to the holiday week in the market with the Nasdaq surging 2.7%, outpacing the S&P 500. Renewed optimism for a December rate cut drove the market higher, particularly benefiting the “Magnificent Seven” mega-cap stocks, all of which finished in the green. The Fed’s direct commentary supporting a rate cut has raised expectations significantly.
Overnight Headlines
- Alphabet (GOOGL) up over six percent on positive reception to its Gemini 3 AI model.
- Broadcom (AVGO) soared over eleven percent, leading the semiconductor bounce.
- Alibaba (BABA) investing $53 billion in AI, highlighting the intensifying global AI competition.
Economic Announcements
Key economic data on Tuesday includes PPI and Retail Sales, crucial for validating the rate-cut narrative. Earnings to watch: Alibaba in pre-market and tech companies like Dell, HP, Autodesk, and Workday after the close.
Earnings Highlights
- BABA: Watch for market reaction post AI investment news.
- Booking Holdings (BKNG): Upgraded to Buy at BofA.
- Carvana (CVNA): Upgraded to Outperform at Wedbush.
Top Movers
- AS: Look for a potential breakout above $36 after a strong surge.
- MDGL: Shows great momentum; watch for a move towards $600 if support at $576 holds.
Quick Trade Ideas
Focus on healthcare and biotech for continuation plays. Monitor names like TYRA for potential breakouts while staying alert for fading setups like Jazz Pharmaceuticals.
Key Takeaway
The market mood is cautiously bullish, driven by anticipation of a December rate cut. While mega-caps lead, focus on healthcare and biotech for actionable momentum. Stay vigilant around key index levels and remain nimble in trading decisions.