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Dow Jones Futures Tick Higher Amid Nvidia, AMD China Deal and Big Tech Breakouts
Dow Jones Futures – Stock futures edged up Monday morning following a strong week on Wall Street, as investors digest new developments from AI chipmakers Nvidia (NVDA) and AMD, along with bullish technical signals from tech giants like Tesla (TSLA), Apple (AAPL) and Alphabet (GOOGL).
Dow Jones Futures Rise Amid AI Chipmaker Headlines
Dow Jones futures rose 0.3%, while S&P 500 futures climbed 0.2% and Nasdaq 100 futures advanced 0.2% early Monday. This follows a robust market rally last week, with the Nasdaq hitting a fresh record high and the S&P 500 not far behind.
However, premarket pressure loomed over Nvidia and AMD stock as reports emerged that both companies agreed to hand over 15% of their China-related chip revenue to the U.S. government. This arrangement was reportedly made to secure export licenses for the Chinese market during the Trump administration, according to the Financial Times and Bloomberg News. The licenses were obtained last week, keeping Nvidia and AMD in the China AI race.
Both NVDA and AMD shares edged lower in premarket trade, showing the market’s cautious reaction to the deal.
Stock Market Recap: Tech-Led Rally Faces Resistance
The stock market rally remained strong last week, led by megacaps and AI hardware names. The Nasdaq surged 3.9%, while the S&P 500 gained 2.4% and the Dow Jones Industrial Average climbed 1.3%. The Russell 2000 also jumped 2.4%, though it, along with the Dow and some key ETFs, hit resistance at their 21-day moving averages.
Despite these hurdles, market sentiment remains positive. ETFs like the VanEck Semiconductor ETF (SMH), which includes Nvidia and AMD as top holdings, gained 3.4% and is now hovering near all-time highs.
Tesla, Apple, Google Break Out
Three members of the Magnificent Seven – Tesla, Google-parent Alphabet, and Apple – flashed technical breakout signals last Friday.
Google stock (GOOGL) soared 6.5% to 201.42, breaking out of a cup-with-handle pattern. This clears a buy point of 197.95, signaling renewed momentum. The relative strength (RS) line has been climbing, suggesting outperformance against the S&P 500.
Apple stock (AAPL) posted its best weekly performance in five years, jumping 13.3% to 229.35. It vaulted above its 50-day and 200-day lines, also clearing a trendline from a consolidation phase that started at the end of 2024. The move comes amid optimism that Apple may avoid harsh tariffs, following CEO Tim Cook’s recent pledge for new U.S. investments during a visit to President Trump.
Tesla stock (TSLA) surged 8.9% last week, closing at 329.65 and regaining both its 50-day and 200-day moving averages. On Friday, it approached a downward-sloping trendline, with a potential aggressive entry seen above 335.15 or the recent peak of 338. CEO Elon Musk fueled momentum with comments about Tesla’s robotaxi program, stating it will offer “open access” starting September, though no firm date was provided.
Several sector ETFs had notable moves last week:
- The ARK Innovation ETF (ARKK), heavily weighted with Tesla stock, rose 5%.
- The SPDR S&P Metals & Mining ETF (XME) skyrocketed 9.5%.
- The SPDR S&P Homebuilders ETF (XHB) climbed 4.1%.
- However, Energy (XLE) and Healthcare (XLV) ETFs slipped 0.8% and 0.7%, respectively.
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 3%, and the VanEck Semiconductor ETF (SMH) continued its rise, thanks in part to Nvidia and AMD’s strength despite geopolitical headwinds.
Caution or Continuation?
While the market remains in an uptrend, with tech leadership clear, some divergence is developing. Equal-weighted ETFs like RSP and QQEW are still lagging their cap-weighted counterparts. That said, analysts suggest that one strong day could bring those ETFs near record levels again.
Meanwhile, rising Treasury yields, up six basis points to 4.28%, and oil’s sharp 5.1% drop to $63.88, add more dimensions to the current macro picture.
Investors are watching for follow-through from last week’s breakout names, especially as Nvidia and AMD navigate new U.S.-China dynamics, and Tesla gears up for its next product wave.
