The Nasdaq fell as Nvidia's momentum stalled. The Dow Jones Industrial Average was recording its best day in months. The S&P 500 had a rollercoaster day, reaching a new high above 5,500 before closing lower. 10-year Treasury yield rising as US combats inflation. Oil prices continued their upward trend, trading above $82 a barrel and on track for their second weekly gain.
APPLE
Apple faces significant challenges in its AI efforts in China due to its stringent regulations. Apple aims to integrate AI across its devices through Apple Intelligence, featuring improvements to Siri and other functionalities. However, the company has been silent about its plans for China due to the strict AI rules, which include approvals for commercial use of large language models (LLMs) and responsibilities for removing illegal content. Apple is also contending with increased competition from local smartphone makers like Huawei, who are emphasising their AI features.
AAPL (Daily). After breaking through solid resistance over the past year on an aggressive trading day, Apple is expected to correct to the region between 198.50 and 206.50.
NVIDIA
Bank of America has advised against viewing Nvidia as a potential victim of a long-term pullback, emphasising that the current AI boom is distinct from the 1990s dot-com bubble. Analyst Vivek Arya highlighted that, unlike the dot-com era's risky debt-fuelled growth, today's AI advancements are driven by well-funded cloud customers in a critical race. AI hardware deployments are still in the early stages of a potential three to five-year growth cycle, potentially reaching a $300 billion annual opportunity. Riding on the company's significant gains in AI processor manufacturing, Nvidia is projected to have a 15% upside over the next year with a $150 price target.
NVDA (H1). Nvidia made a bullish move after a 10-for-1 stock split. It had a sudden correction on the hourly chart, this stock is projected to bounce from 130.00 and gain momentum to break the resistance at 140.00.
Anthropic, a leading AI competitor to OpenAI, unveiled Claude 3.5 Sonnet, its most advanced AI model to date. Backed by tech giants like Google, Salesforce and Amazon, Anthropic closed five funding deals amounting to about $7.3 billion. “Claude 3.5 Sonnet shows marked improvement in grasping nuance, humour and complex instructions. It is exceptional at writing high-quality content with a natural, relatable tone,” the company said in a blog post.
GOOGL (Daily). Steady bullish momentum since early of the year as seen in this rising-wedge pattern. In the short term, Google is projected to trade at 185.50 but beware of the break below 174.50 which will cause a major correction.
Fullerton Markets Research Team
Your Committed Trading Partner