To The Moon

We saw a strong performance from the stock market on Wednesday (16 Oct), with the Russell 2000 leading the way, rising by 1.6% and achieving a weekly gain of 2.5%.

S&P 500 increased by 0.47%, NASDAQ was up by 0.28%, and DJIA up by 0.79%, all closing near their daily highs.

Wednesday's market advance was broad-based, with advancers outnumbering decliners by a 4-to-1 margin on the NYSE and nearly 3-to-1 on the Nasdaq. The equal-weighted S&P 500 climbed 0.7%.

Financial Sector Key Driver For Wednesday Market Gains

Though we have utilities leading the sectors with +2.03%, the main driver for Wednesday’s market gains is the financial sector, which have gained 1.22% following positive earnings reports.

Significant performance came from Morgan Stanley (MS) up 6.5%, First Horizon (FHN) up 4.1%, and Synchrony Financial (SYF) up 6.1%.

Semiconductor stocks also contributed to the market's positive momentum, bouncing back from previous declines. $NVIDIA Corp(NVDA)$ rose up 3.1%, and Broadcom (AVGO) increased up 0.5%. The PHLX Semiconductor Index (SOX) closed 0.2% higher.

We also saw semiconductor stocks rebound and hence helped the technology sector to gain 0.36%.

Billionaire investor Stanley Druckenmiller expressed regret over selling his position in Nvidia (NVDA), citing the company's strong potential in AI. Despite his belief in Nvidia's long-term value, Druckenmiller sold due to concerns over its valuation. He remains optimistic about AI infrastructure investments and hinted at re-entering Nvidia when market pressures ease.

Note Yield Mixed

The bond market saw the 10-year yield increase by seven basis points to 4.025%, while the 2-year yield fell by one basis point to 3.949%.

Stocks To Watch

$Amazon.com(AMZN)$ has made a significant move into nuclear energy, aiming to power its artificial intelligence operations with small modular reactors. This announcement sent shares of Oklo (OKLO) and $NuScale Power(SMR)$ soaring, with gains of 41.8% and 40% respectively. The tech giant's entry into nuclear energy follows a similar initiative by Google earlier in the week. Other nuclear-related stocks also saw a boost, including Vistra (VST), Constellation Energy (CEG), and Dominion Energy (D), which has partnered with Amazon for reactor development.

I am seeing that this news have benefitted Amazon as it has maintained trading above the short-term and long-term MA, and we are also seeing a potential bullish MACD crossover formed.

And the MTF is giving very encouraging strong uptrend signal as well.

SMR have given a very good gap up on the MTF with strong upward trend signal and the MACD is also giving upside movement trend.

So question is whether is it too late to get into SMR?

$Walt Disney(DIS)$ has introduced the "Lightning Lane Premier Pass" at its Florida and California theme parks, allowing guests to skip lines without limits for an additional fee. This new offering aims to enhance guest experience, with prices ranging from $137 to $478, depending on the park and date. The pass is part of Disney's strategy to maximize revenue from its theme parks.

Costco (COST) announced a quarterly dividend of $1.16 per share, maintaining its previous payout. The retailer continues to benefit from consumer spending on various goods, including gold bars and hurricane supplies, reinforcing its stable financial position.

Summary

I believe we should be seeing more rebound coming from the mega cap like Amazon, Google and Apple following the semiconductor stocks rebound, for the financial sector, we should still be seeing positive earnings from bank and FIs.

I am holding onto my Amazon, Nvidia and $Alphabet(GOOGL)$ positions.

Appreciate if you could share your thoughts in the comment section whether you think market on Thursday would see tech and mega cap stocks making a rebound?

@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.