Will the Stock Market Follow Big Tech Including Nvidia Stock Forecast 2030?
Jan 15, 2024
The financial markets have witnessed a mixed week, brimming with anticipation and laden with unexpected events even making new Nvidia stock forecast 2030.
Despite the somewhat cautious optimism permeating the trading floor, the NASDAQ Composite and NASDAQ-100 Index managed to rise by 3.1% and 3.2% respectively. Alongside this, the Standard & Poor’s 500 Index peeked at a 52-week high at 4,802.40 on Friday, ending the day with a slight surge of 0.1% at 4783.83, and marking an overall weekly gain of 2%. The Dow Jones industrials too, enjoyed a modest boost, adding 0.34%.
The oil market was relatively stable with prices showing a minor increase, while gas prices continued on a downward trajectory. All indicators suggest that the Federal Reserve would possibly reduce interest rates, although the exact timing remains uncertain.
However, concerns persist over the possible negative implications of the January effect on stocks in 2024. Amidst this apprehension, certain incidents have added to the market tension.
For instance, Citigroup announced plans to cut 20,000 jobs following its worst quarter in 14 years. Car rental giant, Hertz, revealed intentions to sell a third of its electric-vehicle fleet, citing high maintenance and repair costs, leading to a 6.8% decrease in shares on Friday and a 19.7% drop since December 29. Tesla, too, saw a slump of 7.8% over the week.
An unexpected incident involving an Alaska Airlines aircraft led to the grounding of all 737 9 Max airliners until further investigations are completed, resulting in a 12.6% drop in Boeing shares last week, translating to an overall decrease of 16.5% for the year.
Internationally, military tensions escalated as the British and U.S. navies confronted Houthi rebels in Yemen, highlighting potential increases in the Hamas-Israel conflict.
To counteract these incidents and foster market stability, patience and prudent investment strategies are advised. As the fourth-quarter earnings season commences, Wall Street anticipates six rate cuts this year, the first expected in March. While some view this as irrational exuberance, the anticipation of the first rate cut during the Federal Reserve’s two-day meeting on January 30-31 is palpable.
The key federal funds rate stands at 5.25% to 5.5%, significantly impacting U.S. interest rates. The 10-year Treasury yield is currently at 3.944% after briefly surpassing 5% on October 19. This yield is particularly influential on mortgage rates, with home buyers and sellers hoping for a decrease to invigorate the housing market.
Despite these turbulent events, big tech companies, particularly Nvidia, experienced a 11.4% surge in shares following the announcement of new chips targeted at artificial intelligence, personal computers and gaming, along with new collaborations making a very positive Nvidia stock forecast 2030 for investors.
Nonetheless, the market remained somewhat narrow, with technology companies attracting significant investment. This trend, however, may lead to the U.S. market becoming overbought as in December, suggesting a possible sharp pullback. Furthermore, the looming risks of a government shutdown and geopolitical conflicts in the Middle East, Ukraine, and Taiwan continue to loom, cautioning investors to make informed decisions.