When the usual suspects are the most actively traded stock, traders may become complacent.
On Tuesday, Nvidia (NVDA) gained 3.97% on 351.93 million shares. Ahead of its next-generation Blackwell AI server launch, speculators are betting on a renewed rally. Expect NVDA stock to trade at heavy volumes again today. It will lift Advanced Micro Devices (AMD) and Intel (INTC). After markets close today, watch Micron Technology (MU). The firm will report quarterly results.
Be wary of Chinese tech firms trading on strong volumes today. Nio (NIO) added 11.65% yesterday but could easily pull back. Similarly, PDD (PDD) and iQIYI (IQ) may fall if traders decide to take profits.
Gold stocks (GLD) have a good chance of ripping higher. Bargain hunters may wait for gold prices to fall from $2,682 to between $2,450 – $2500. Still, markets expect the Federal Reserve will cut rates aggressively throughout the rest of this year. This hurts the U.S. dollar (DXY) and strengthens gold prices.
In the housing sector, KB Home (KBH) will fall by nearly 6%. The firm posted earnings of $2.04 a share. Housing gross margin fell Y/Y. Despite the earnings miss, the housing market benefits the most from rate cuts. Long-term investors should expect the pullback after KBH stock closed at near its 52-week high.