Don't get me wrong. I'm bullish for 2024 but the meteoric rally is really unsustainable. A healthy pullback of 5-10% is likely to come soon. Could it happen with the CPI news or NVDA's earning in the week(s) to come?
Wall Street is poised to wrap another week of gains, with the S&P 500 index surpassing the 5,000 mark and the Nasdaq approaching 18,000 points. For the two indices, this marks the fifth consecutive week in the green, the 14th positive week out of the last 15, indicative of the impressive rally fueled by optimism surrounding artificial intelligence.
Watch out for the support lines
Shares of NVIDIA Corp. (NASDAQ:NVDA) are already up nearly 50% since the beginning of the year, with the semiconductor giant surpassing the $1.8-trillion market capitalization mark.
NVIDIA plans to establish a new business unit dedicated to designing tailored chips, including AI processors, Reuters reported Friday, citing sources with knowledge of the details.
The chip designer aims to support tech firms who want to create custom-designed chips for specific requirements such as lower energy usage and streamlined design expenses, according to the report.
In addition to potential customers in the telecom, automotive and video game industries, NVIDIA has also discussed the development of custom chips with representatives from Amazon.com (AMZN), Meta (META), Microsoft (MSFT), Google (GOOG, GOOGL) and OpenAI, the report said.
NVIDIA is negotiating with Ericsson (ERIC) for the development of a wireless chip incorporating NVIDIA's graphics processing unit technology. According to one source, the anticipated new version of Nintendo's handheld Switch console is anticipated to incorporate a custom-designed NVIDIA chip.
Overall, the Magnificent Seven rose to a combined market cap of $13.2 trillion, almost half the size of the rest of the 493 stocks within the S&P 500.
The Russell 2000 index of small caps has again reached the 2,000 mark, outperforming large-cap peers.
Bitcoin (CRYPTO: BTC) took the spotlight, with the major cryptocurrency rising more than 5% to over $47,000 in its biggest weekly rally in four months. Newly launched Bitcoin spot ETFs have accumulated over 200,000 coins worth $9.56 billion since their debut.
Weekly options trades summary
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