FMP

FMP

Enter

The tech-heavy Nasdaq is poised for a positive open on Wednesday, with futures contracts pointing upwards. This follows a recent sell-off in AI-linked stocks, b

Nasdaq Futures Bounce Back as Nvidia Recovers, AI Rout Eases

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Tech Daily

The tech-heavy Nasdaq is poised for a positive open on Wednesday, with futures contracts pointing upwards. This follows a recent sell-off in AI-linked stocks, but Nvidia's (NVDA) rebound seems to be restoring investor confidence.

Nvidia Steadies the Ship:

  • Nvidia, a leading chipmaker and a major player in the AI space, saw its stock price plummet earlier this week. This decline contributed significantly to the broader weakness in AI stocks.
  • However, Nvidia's stock price displayed signs of recovery in pre-market trading on Wednesday, rising over 2%. This positive movement seems to be calming investor anxieties and boosting the overall outlook for the Nasdaq.

AI Sector Still Bruised:

While Nvidia's recovery is a welcome sign, the AI sector remains somewhat bruised. Many AI-related stocks are still trading lower compared to their recent highs.

What's Driving the Rebound?

The reasons behind the nascent optimism in the market are multifaceted:

  • Profit-Taking Correction: The recent sell-off might have been a case of investors taking profits after a significant run-up in AI stocks. With some selling pressure relieved, the market might be ready to find its footing again.
  • Focus on Fundamentals: After a period of rapid growth, investors might be shifting their focus towards a more fundamental analysis of AI companies. This could lead to a more balanced valuation of the sector.
  • Fed Policy Await: The upcoming remarks from Federal Reserve officials are still on investors' minds. Any hints about a slower pace of interest rate hikes could further bolster market sentiment.

Looking Ahead:

While the immediate outlook for the Nasdaq seems to be improving, it's important to remain cautious. The AI sector is still navigating a period of adjustment, and overall market conditions remain fluid.

Stay Informed with FMP's M&A Data:

Mergers and acquisitions (M&A) activity can significantly impact the technology sector, including the AI space. Stay ahead of the curve by using Financial Modeling Prep's (FMP) M&A data and analysis: link to FMP's M&A developer documentation.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep