The US stock markets are holding steady in early trading after achieving record highs for the Dow, S&P, and NASDAQ. Eleven minutes after opening, the Dow is down 64 points (0.14%) to 46,044. The S&P has dropped 2.09 points (0.03%) to 6,585.44, while the NASDAQ has risen 10 points (0.05%) to 22,053.25. Among today’s top gainers, Paramount Skydance rose by 6.01% as a bid for Warner Bros. Discovery is anticipated. Micron increased by 3.18% thanks to a positive outlook for memory chips used in AI and data centers. Super Micro Computer’s stocks went up by 2.89%, driven by strong server demand that keeps it above its 100-day moving average.

Shares See Increases

Corning’s shares climbed 2.82%, supported by a strong demand forecast for display glass. Tesla’s stocks rose 2.55%, boosted by production targets and high demand for electric vehicles. Nebius NV and Roblox improved by 2.11% and 1.97%, respectively, due to trends in cloud and AI infrastructure and product engagement. General Motors, SoFi Technologies, Western Digital, and Microsoft also reported gains, benefiting from electric vehicle strategies, consumer lending, AI advancements, and cloud growth. With major indices at record highs, this pause signals a chance to protect recent gains. The CBOE Volatility Index (VIX) remains low at around 13, well below its long-term average of about 19. This makes buying protective put options on the S&P 500 (SPY) or Nasdaq 100 (QQQ) a cost-effective way to insure portfolios over the coming weeks.

Future Expectations

AI-related hardware is clearly driving the market, a trend that has developed over the years. The sustained demand for data center infrastructure has resulted in exceptional earnings for key suppliers throughout 2024. Therefore, it makes sense to keep investments in leaders like Micron and Super Micro, possibly using bull call spreads to capture more gains while managing risk. Tesla’s breakthrough above the $367 resistance level is a strong technical sign, bringing the stock closer to its all-time highs from 2021. This movement indicates strong momentum that may continue soon. Purchasing near-term call options is a simple way to take advantage of this stock’s strength, independent of the broader market. This optimistic environment is supported by a more stable macroeconomic landscape compared to previous years. After tackling inflation problems in 2023 and 2024, the Consumer Price Index (CPI) has stabilized at a manageable annual rate of 2.5%. This has allowed the Federal Reserve to maintain interest rates, boosting investor confidence in tech and consumer sectors. Create your live VT Markets account and start trading now.

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