The stock market started the week with mixed results following the passage of a funding bill that prevented a government shutdown. Early gains by Nvidia (NVDA) and Tesla (TSLA) provided a boost, but broader market trends reflected investor caution.
A mixed start for major indexes
On Monday morning, the Dow Jones Industrial Average fell by 0.6% (250 points), and the S&P 500 declined by 0.1%. Meanwhile, the tech-heavy Nasdaq composite edged higher, climbing 0.4% in early trading.
Adding to market dynamics, the 10-year Treasury yield ticked up to 4.55%, signaling concerns about interest rates. Oil prices, however, provided relief as West Texas Intermediate futures dropped to around $69.10 per barrel.
Market moves: exchange-traded funds
Among exchange-traded funds, the Invesco QQQ Trust (QQQ) rose 0.4%, reflecting strength in tech stocks. Conversely, the SPDR S&P 500 ETF (SPY) slipped by 0.1%.
Nvidia and Tesla lead the pack
Nvidia made a strong rebound, gaining 3.1% on Friday and adding another 1.8% in early Monday trading. Shares remain below their 50-day moving average, which now serves as a key resistance level for investors to watch.
Tesla, on the other hand, faced a challenging week, with shares dropping 3.5% on Friday—marking the third consecutive session of losses. Despite these setbacks, Tesla stock recovered by 1.6% on Monday morning. “Buyers seem to be reemerging in these key stocks, signaling a potential reversal,” observed market analyst Amanda Liu.
Light economic calendar ahead
This holiday-shortened week features a sparse economic calendar, with new home sales data scheduled for Tuesday. Economists expect a slight recovery to a 665,000 annual pace, rebounding from the hurricane-impacted October figures.
The stock market will close on Wednesday for the Christmas holiday, with Tuesday’s session set to be abbreviated.
Friday’s rally and the Dow’s momentum
Last Friday saw a strong rally across major indexes. The Dow Jones Industrial Average climbed 1.2%, while the S&P 500 rose 1.1%, and the Nasdaq composite advanced 1%, snapping a three-day losing streak.
Notable performers included BlackRock (BLK), Burlington Stores (BURL), and Taiwan Semiconductor Manufacturing (TSM), which remain on investors’ radar for their near-buy-zone performance.
Disney approaches a buy point
Disney, a Dow Jones component, is nearing a 118.63 buy point in a cup-with-handle pattern. However, shares fell 1.3% on Monday morning, reflecting broader market caution.
Companies to watch: BlackRock, Burlington, and Taiwan Semiconductor
BlackRock hovers near a 1,068.34 buy point in a four-weeks-tight pattern, supported by its 50-day moving average. The stock dipped 0.1% Monday morning.
Burlington Stores remains within buy range above its 279.51 buy point despite recent losses. Shares declined by 0.8% in early trading.
Taiwan Semiconductor, meanwhile, is testing support at its 50-day moving average. Shares gained 3.2% on Monday, bringing it closer to a 205.63 buy point in a cup-with-handle formation.
Dow Jones leaders: Amazon, Apple, and Microsoft
Amazon continues to perform strongly, rising 0.7% on Friday and maintaining its position above a 201.20 buy point. The stock edged up 0.1% Monday morning.
Apple shares, having reached new highs on Friday, remain slightly out of buy range above a flat base’s 237.49 entry. The stock added 0.3% in Monday morning trading.
Microsoft faces a more challenging trajectory, falling after three consecutive days of losses. The software giant is forming a cup-with-handle pattern with a 456.16 buy point, which remains a key level for investors.
Conclusion: navigating a mixed market
As the holiday season approaches, market participants are weighing mixed signals from the broader economy and individual stocks. While the passing of a government funding bill provides short-term stability, ongoing challenges in key sectors and global markets underscore the need for cautious optimism moving forward.
