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NEWS
The Trillion Dollar Club’s New Member

Source: Tenor.com

Broadcom’s strength buoyed the Nasdaq 100, but the rest of the major indexes had a tougher time as inflation fears mounted and year-end profit-taking continued. Next week the Fed is expected to cut rates again, but its economic projections and commentary will take center stage as investors look ahead to 2025. 👀

Today’s issue covers the tale of two markets, the rising risk to Nvidia bulls, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 3 of 11 sectors closed green, with technology (+0.43%) leading and communication services (-1.19%) lagging.

Source: Finviz.com

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $ATIF, $LW, $WKEY, $RPTX, $LEDS 📉 $GOEV, $ABBV, $VKTX, $RH, $BETR*

*If you’re a business and want to access this data via our API, email us.

STOCKS
The Tale Of Two Stock Markets 🤔 

It was another disjointed week in the markets, with the small-cap Russell 2000 and price-weighted Dow Jones Industrial Average closing well in the red. Meanwhile, the Nasdaq 100 closed in the green as mega-cap tech stocks soared to new highs.

Broadcom was the latest tech giant to flex its muscles, jumping 25% on the back of a strong AI outlook and topping the $1 trillion market cap threshold for the first time. It adds to the already wild year-to-date performance of the 10 largest stocks in the U.S., nine of which are technology names. 💪 

Source: Koyfin.com

Strength in the market’s largest stocks has helped drive the market-cap indexes to record highs. However, technical analysts are flagging a growing divergence in the equal-weighted version of these indexes.

Below is the S&P 500 vs. its equal-weighted counterpart, which has fallen eight of the last ten days. The two indexes generally trade in lockstep, so this growing divergence is a notable change of character into 2025. 🤔 

Source: Koyfin.com

Despite the recent weakness under the surface, investors and traders continue to bet that the biggest winners will continue to win. As we’ve noted, sentiment is extremely bullish across many measures, but the lack of a clear catalyst for bears to take control has the market continuing to climb its “wall of worry.” 🤷 

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CHART OF THE DAY
Rising Trendline Under Pressure For Nvidia 🛑 

Since the end of 2022, Nvidia has consistently followed a strong and reliable trendline—until now. With earnings behind us and the stock priced to perfection, cracks are beginning to appear for the first time in years, signaling a potential shift.

Stocktwits user @badcharts points out that this could mark the start of a significant trend reversal for Nvidia.

STOCKS
Other Noteworthy Pops & Drops 📋️ 

Trevi Therapeutics (+17%): Announced that its phase 2b study of Haduvio, an investigational therapy for idiopathic pulmonary fibrosis (IPF) with chronic cough, has achieved 75% of its enrollment target of 160 patients.

Ayro Inc. (+18%): The electric fleet solutions provider was named a tier-one supplier for General Motors (GM) through its collaboration with GLV Ventures.

ZenaTech (-4%): The Canada-based provider of AI drone solutions and enterprise SaaS solutions launched a quantum computing project using its drones for traffic optimization and weather forecasting.

RingCentral (-6%): The cloud-based communications software and services provider was downgraded by Mizuho Securities from ‘Outperform’ to ‘Neutral,’ citing downside risks to its 2025 estimates.

Super Micro Computer (-5%): The embattled server maker has hired Evercore Inc. to help it raise capital and strengthen its finances.

Western Digital (-1%): The provider of data storage devices and solutions’ CEO, David Goeckeler, hinted at more pricing headwinds than expected this quarter.

Nano Nuclear Energy (+7%): The company announced a collaboration with Digihost Technology Inc. to establish Microreactor Technology at its 60 megawatts (MW) power plant in upstate New York.

Charles Schwab (-4%): The financial services firm’s November activity report and full-year net revenue guidance raised retail sentiment despite shares falling 4%.

Upstart Holdings (+10%): Needham upgraded the AI-lending platform from ‘Hold’ to ‘Buy,’ with a price target of $100, implying a 15% upside.

Affirm (+3%): The buy-now-pay-later firm announced a long-term capital partnership with Sixth Street, its largest capital commitment to date ($4 billion).

SEALSQ Corp. (-4%): The vertical digital security solutions provider fell after announcing a public offering of 7.69 million shares at $1.30 each ($10 million total).

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COMMUNITY VIBES
One Tweet To Sum Up The Week 🤪 

UPDATE 🚨 Fartcoin now has a market cap of over $640 MILLION

It’s up ANOTHER 15% today and up 160% this week

WHAT IS HAPPENING…

— Stocktwits (@Stocktwits)
4:28 PM • Dec 13, 2024

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