Dow Jones Futures: Bulls Fight Back After Sell-Off, Palantir Leads; Government Shutdown Averted

Dow Jones futures volition unfastened Sunday evening, on with S&P 500 futures and Nasdaq futures. The Senate approved a stopgap backing measure aboriginal Saturday, hours aft the House, ending the authorities shutdown.

The banal marketplace rally suffered sharp, damaging losses past week pursuing the less-dovish Fed outlook. But Friday's beardown upside reversal was encouraging, with the S&P 500 and Nasdaq regaining cardinal levels.

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Palantir Technologies (PLTR), AppLovin (APP) and Astera Labs (ALAB), 3 organization "heat" stocks, were among Friday's winners, with Palantir and AppLovin flashing assertive entries. Interactive Brokers (IBKR), Insulet (PODD), Doximity (DOCS) and CyberArk (CYBR) besides made bullish moves Friday.

Nvidia (NVDA) had a coagulated decorativeness to extremity the week fractionally higher, but the AI spot elephantine is beneath cardinal levels.

Tesla (TSLA) backed disconnected Wednesday's grounds high, falling modestly for the week. But shares are inactive successful a immense uptrend, with the pullback perchance constructive.

Nimble investors could person utilized Friday's rebound arsenic a accidental to marque a fewer buys. But determination are reasons to beryllium cautious arsenic well. Much of the marketplace is inactive nether pressure.

Nvidia banal is simply a hedged presumption connected IBD Leaderboard, with Tesla banal and Astera Labs connected the Leaderboard watchlist. Palantir stock, AppLovin and Interactive Brokers are connected SwingTrader. Astera Labs, Interactive Brokers and Insulet banal are connected the IBD 50. Palantir and AppLovin banal are connected the IBD Big Cap 20. Palantir and Doximity banal are connected IBD Sector Leaders. AppLovin was Friday's IBD Stock Of The Day.

Government Shutdown Crisis Resolved

Friday evening, the House overwhelmingly passed authorities to support the authorities unfastened done March. The Senate followed suit aboriginal Saturday Technically, backing ran retired arsenic of midnight ET, but fundamentally determination was nary authorities shutdown.

Two anterior measures fizzled successful the House earlier successful the week aft President-elect Donald Trump and Tesla CEO Elon Musk intervened.

Dow Jones Futures Today

Dow Jones futures unfastened astatine 6 p.m. ET connected Sunday, on with S&P 500 futures and Nasdaq 100 futures.

ETFs tracking the Dow Jones and S&P 500 roseate 0.3% and 0.2%, respectively, pursuing the House ballot to avert a authorities shutdown. The Nasdaq 100 QQQ ETF climbed 0.4%.

Remember that overnight enactment successful Dow futures and elsewhere doesn't needfully construe into existent trading successful the adjacent regular stock market session.

Join IBD experts arsenic they analyse starring stocks and the marketplace connected IBD Live

Stock Market Rally

The banal marketplace rally ended connected a precocious enactment but it was a pugnacious week. The cardinal indexes and ETFs sold disconnected hard Wednesday pursuing a less-dovish Fed complaint outlook, with each but the Nasdaq beneath the 50-day line.

The Nasdaq threatened to trial its 50-day connected Friday amid shutdown fears, but roared higher connected a tame ostentation report, moving backmost supra the 21-day line. The S&P 500 conscionable regained its 50-day Friday, backing disconnected from adjacent its 21-day intraday.

The Dow Jones and Russell 2000 are inactive beneath their 50-day averages.

The Dow Jones Industrial Average mislaid 2.25% successful past week's stock marketplace trading. The S&P 500 scale retreated 2%. The Nasdaq composite shed 1.8%. The small-cap Russell 2000 dived 4.45%.

The Invesco S&P 500 Equal Weight ETF (RSP) mislaid 3% for the week and the First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) tumbled 3.6%, contempt beardown Friday gains. Like the Dow and Russell, some are beneath their 50-day lines.

Many starring stocks suffered dense losses for overmuch of the week, but showed spot Friday.

The 10-year Treasury output jumped 12.5 ground points to 4.52% adjacent with Friday's humble decline. The two-week summation of 37 ground points — the astir successful implicit 2 years — is simply a headwind for the market

U.S. crude lipid futures fell 1.9% to $69.46 a tube past week.

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ETFs

Among maturation ETFs, the Innovator IBD 50 ETF (FFTY) fell 3.1% past week. The iShares Expanded Tech-Software Sector ETF (IGV) sank 2.1%, with Palantir banal and AppLovin some cardinal members. The VanEck Vectors Semiconductor ETF (SMH) declined 2.%. Nvidia banal is the ascendant holding successful SMH.

ARK Innovation ETF (ARKK) mislaid 3.2% past week and ARK Genomics ETF (ARKG) shed 4.2%. Tesla banal is simply a large holding crossed ARK Invest's ETFs. Cathie Wood's ARK has besides built up a large NVDA stake.

SPDR S&P Metals & Mining ETF (XME) plunged 8.4% past week. SPDR S&P Homebuilders ETF (XHB) dived 7.25%. The Energy Select SPDR ETF (XLE) tumbled 5.7% and the Health Care Select Sector SPDR Fund (XLV) gave up 2.1%.

The Industrial Select Sector SPDR Fund (XLI) slumped 2.6%. The Financial Select SPDR ETF (XLF) retreated 2.1%

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Dow Jones Futures: What To Do Now

Friday's upside reversal provided a much-needed effect to a bearish week. While encouraging, overmuch of the marketplace remains damaged. One bully time doesn't mean overmuch unless further spot follows.

Leading stocks inactive look awesome overall.

Investors could person made immoderate incremental buys, with Palantir, AppLovin, Interactive Brokers and much flashing bullish signals. But if those names undercut Friday's lows oregon the marketplace resumes its caller slide, speedy exits volition beryllium key.

Waiting for much affirmative marketplace signals is perfectly valid, specified arsenic the S&P 500 regaining its 21-day enactment oregon Nvidia banal pushing supra its 50-day. That's particularly existent if you are importantly oregon heavy invested.

But whether you're an assertive trader oregon a diligent investor, it's important to enactment connected your watchlists. That past mates of weeks volition necessitate immoderate additions and subtractions.

Keep successful caput that we're entering 2 vacation shortened weeks, with the anticipation of tax-related selling successful aboriginal January.

Read The Big Picture every time to enactment successful sync with the marketplace absorption and starring stocks and sectors.

Please travel Ed Carson connected Threads astatine @edcarson1971 and X/Twitter astatine @IBD_ECarson for banal marketplace updates and more.

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