Dow Jones futures rose slightly early Thursday, along with S&P 500 futures and Nasdaq futures. ARM Holdings fell overnight, despite an earnings beat after the AI chip stock reclaimed a buy point Wednesday. Roblox crashed on some weak metrics.
The stock market rally shrugged off Google parent Alphabet, which tumbled on weak cloud revenue and massive capital spending plans. But those capex plans were bullish for AI chipmakers.
In regular hours trading Nvidia rose solidly, along with ARM stock, Taiwan Semiconductor, Broadcom and Marvell Technology. However, Nvidia rival Advanced Micro Devices, an AI laggard, sold off.
Separately, Tesla fell to its lowest close in months, and kept sliding early Thursday as archrival BYD spiked on self-driving news.
Roblox plunged 30% early Thursday as the video game platform fell short on Q4 daily active users. RBLX stock had been trading at its best levels in nearly three years.
Google stock is on IBD Leaderboard, with Tesla stock on the Leaderboard watchlist. Broadcom stock is on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures climbed 0.1% vs. fair value. S&P 500 futures rose 0.2% and Nasdaq 100 futures edged higher.
The 10-year Treasury yield edged up to 4.45%.
At 8:30 a.m. ET, the Labor Department will release Q4 productivity data and the latest weekly jobless claims figures.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally advanced Wednesday, closing near session highs. Nasdaq brought up the rear due to Google, Tesla and AMD.
The Dow Jones Industrial Average gained 0.7% in Wednesday's stock market trading. The S&P 500 index rose 0.4%. The Nasdaq composite edged up 0.2% after undercutting its 21-day and 50-day lines intraday. The small-cap Russell 2000 jumped 1.1%, closing above its 50-day for the first time since Dec. 17.
The Invesco S&P 500 Equal Weight ETF climbed 0.5%, back above its 50-day line.
The First Trust Nasdaq 100 Equal Weighted Index ETF popped 1.1%, its best close since Dec. 6.
U.S. crude oil prices fell 2.3% to $71.03 a barrel.
The 10-year Treasury yield tumbled nine basis points to 4.42%, the lowest since Dec. 18, when yields spiked on that day's Fed announcement.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF jumped 2.3%. The iShares Expanded Tech-Software Sector ETF climbed 0.6%. The VanEck Vectors Semiconductor ETF leapt 2.35%. Nvidia stock is the No. 1 holding, with Broadcom, Taiwan Semiconductor and Marvell notable holdings, along with AMD.
ARK Innovation ETF rose 1.1% and ARK Genomics ETF rallied 4.8%. Tesla stock is the top component across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF advanced 0.9%. The Energy Select SPDR ETF was up 0.2% and the Health Care Select Sector SPDR Fund bounced 1%.
The Industrial Select Sector SPDR Fund rose 0.1%.
The Financial Select SPDR ETF popped 1.1%
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Arm Earnings
Arm earnings topped quarterly estimates. But the chip design firm guided in line for the current quarter.
ARM stock initially tumbled overnight, but pared losses somewhat by Thursday morning. Shares leapt 6.8% to 173.26 in Wednesday's session, reclaiming the 164.16 buy point. ARM stock broke out powerfully on Jan. 22, but then plunged Jan. 27 as DeepSeek fears rocked AI hardware stocks. But shares have rebounded quickly since then.
Google's plans to spend $75 billion on capital spending this year, far above estimates, signal continued strong demand for AI chips and other hardware.
Nvidia Stock, Other AI Chips
Nvidia stock leapt 5.35% on Wednesday, regaining the 200-day line. But shares have struggled to recover from the DeepSeek sell-off. NVDA on Monday hit its lowest level in nearly five months. Shares advanced slightly overnight.
Broadcom stock popped 4.3% to 232 in Wednesday's session, working its way up a new base toward a 251.88 buy point, according to MarketSurge. AVGO stock gapped down 17% on Jan. 27, but has quickly rebounded. Shares rose slightly in premarket trading.
Taiwan Semiconductor stock rose 2.2% to 208.57, bouncing from near the 50-day line, back above a 205.63 cup-with-handle buy point that investors could still use. TSM stock edged lower early Thursday.
Marvell stock ran 6.2% higher to 116.46, back above its 50-day line as it continues to recover. Shares rose slightly before the open.
Meanwhile, AMD stock dived 6.3% on light data-center revenue, hitting its worst levels since late 2023. AMD tilted lower in extended action.
Trump Faces Huge AI Chip Decision For Nvidia And The World
Tesla Stock
Tesla stock fell 3.6% to 378.17, setting a two-month closing low.
TSLA stock is in a consolidation with a 488.54 buy point.
Shares have tumbled back since hitting resistance on Jan. 31 at a downward-sloping trendline, which offered an early entry.
The relative strength line for Tesla stock did mark a two-month low.
New data signals that Tesla EV sales in 2025 are off to a slow start in Europe, amid rising competition and potential brand damage from Elon Musk's political efforts in the U.S. and Europe. Analysts have slashed 2025 EPS estimates since the Q4 earnings call on Jan. 29. However, TSLA stock's valuation is mostly about hopes for robotaxis in the near future.
Tesla stock fell slightly early Thursday, signaling a test of 2025 intraday lows.
Tesla archrival BYD spiked in Hong Kong trading on expectations of big rollout of driver-assist systems next week to cheaper EVs.
What To Do Now
The stock market rally showed resilience Wednesday, shrugging off Google's sell-off. Some more stocks flashed buy signals, including ARM and Taiwan Semiconductor, but also names outside tech.
The major indexes are close to record highs, though the Nasdaq is closer to its 50-day line. Small caps are trying to rejoin the party. But if you make new buys, be careful. The indexes are all still rangebound and subject to big swings on headlines.
Keep working on watchlists.
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