The stock market presents a dynamic series of events. Cruise line shares are on the rise, while tech giants such as Nvidia face persistent resistance levels.
This summer, cruise lines are enjoying an influx of travelers. An unprecedented 31.5 million people are expected to embark on voyages, surpassing the numbers from the pre-pandemic era. However, Miray Cruises has abruptly halted its three-year global journey for undisclosed reasons.
In the tech sector:
Nvidia’s stocks have surged this year but have hit a wall at the $500 mark despite strong quarterly earnings. The company’s future trends hang in the balance, neither decidedly bullish nor bearish.
Black Friday saw consumers spending less due to relentless inflation and high interest rates dampening consumer sentiment. TD Cowen anticipates that holiday spending growth may only reach between 2% and 3%, falling short of their initial forecast of 4% to 5%. Major retailers are reducing seasonal hiring and may extend discounts throughout the Christmas season.
The market ended last week virtually unchanged after Thanksgiving — S&P 500 edged up by a mere 0.1%, Dow Jones added a modest 0.3%, while Nasdaq slipped by just -0.1%. Trading volumes were thin following the holiday, with gains in healthcare, finance, and energy sectors offsetting losses in technology stocks like Nvidia (-1.9%) and Alphabet (-1.3%).
Microsoft’s shares traded quieter at -27 million shares as did Walmart Inc at -38 million shares, indicating investors’ cautious stance towards these stocks.
Despite price drops in several stocks such as Exxon Mobil Corp and Nvidia, market trends suggest softening due to decreasing volumes. The market’s Relative Strength Index (RSI) is at 54.73 — a neutral position implying that prices could swing either way.
The market’s downtrend appears to be losing momentum — prices may start to rise again soon, as suggested by the trend divergence.
There are clear signs of a potential market correction due to overvaluation and rising inflation rates. However, investors should stay alert yet hopeful about growth opportunities in sectors like cruise lines. As always, conducting personal research before making any investment decisions is vital.