To The Moon

The market saw a broad rally despite below-average volume at NYSE. S&P 500 rose by 0.77%, while the DJIA increased by 0.47%, both extending further into record territory. The NASDAQ closed 0.87% higher, about 170 points shy of its all-time high.

The Treasury market was closed for Columbus Day, and there was no significant U.S. economic data released today. Meanwhile, oil prices were pressured by demand concerns after China's Ministry of Finance failed to provide detailed economic stimulus plans during a press briefing.

Technology Sector Start The Week With Gains

The S&P 500 information technology sector gained 1.36%, driven by strong performances from mega caps and chipmakers. We have significant performance from $NVIDIA Corp(NVDA)$ which closed 2.43% higher, and Apple (AAPL) also ended the session higher with 1.65%.

The utilities sector followed with a 1.29% increase, while the real estate sector rose by 0.68%.

The energy sector was the only sector in negative territory, declining by 0.1% due to falling commodity prices.

Stocks To Watch

Advanced nuclear technology companies, Oklo (OKLO) and NuScale Power (SMR), saw significant stock rallies after Google (GOOG) $Alphabet(GOOGL)$ announced a groundbreaking corporate agreement to purchase power from small modular reactors. This move aims to meet the electricity demands for artificial intelligence, highlighting a growing interest in clean energy solutions among tech giants. Oklo and NuScale Power ended Monday with gains of 9.7% and 5.9%, respectively, as Google plans to source power from seven reactors built by Kairos Power, targeting 500 MW of nuclear power by the decade's end.

Even though we are seeing nuclear companies stocks going up, I believe the move by Alphabet should make them in a good stead to grow their AI business, they would be the front runner in the clean energy technologies.

If we looked at the MACD, it is making a bearish downside, but good news is GOOGL is trading above the short-term and long-term MA on the MTF, and the signal is giving an uptrend.

So I am expecting GOOGL to make some upside trading this week as technology stocks continue to do well.

I am holding onto my GOOGL position as I am expecting GOOGL to make a clear difference in stock price once we see the AI data centre technologies.

Nvidia-backed CoreWeave, along with other companies, will invest over $8 billion in UK data centers, as announced by Britain's Department for Science, Innovation and Technology. CoreWeave's investment of £750M in AI infrastructure is part of a broader initiative including ServiceNow (NOW) and CyrusOne. This investment surge aligns with the growing demand for data center capabilities to support artificial intelligence advancements.

$Broadcom(AVGO)$ and $Taiwan Semiconductor Manufacturing(TSM)$ continue to be popular long positions among institutional investors, according to Jefferies' survey. However, the percentage of investors overweight in the semiconductor industry has decreased, with Intel (INTC) remaining the most-crowded short for the third consecutive quarter. The survey also noted a rise in underweight positions in semiconductor stocks, reflecting shifting investor sentiment.

Wells Fargo & Company (WFC) extended its gains for the seventh consecutive trading session, buoyed by strong Q3 earnings results. The bank's fee-based revenue helped offset net interest income challenges, leading to a 1.92% rise in stock value. The positive earnings report contributed to a 10.58% increase in Wells Fargo's stock over six trading days.

Bit Digital (BTBT) acquired Enovum Data Centers in Montreal for approximately C$62.8M, expanding its high-performance computing operations. The acquisition includes a fully operational Tier 3 data center and opens opportunities for new services such as colocation. Bit Digital's stock gained 2.8% following the announcement, as the company explores debt financing to support further expansion.

Summary

I believe the semiconductor sector should continue to do well as the strength from Nvidia and Broadcom should help the sector, and NVDA has crossed $138, and I am expecting more upside trading today and this week from NVDA,

The market should continue to exhibit broad rally from the technology stocks and also from some of the airlines stocks earnings.

Appreciate if you could share your thoughts in the comment section whether you think market could continue to give broad rally with strength from mega cap and semi conductor stocks.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.