Markets have been anything but quiet this week, with plenty to keep investors busy. Inflation data, President Donald Trump's trip to China to meet with President Xi JinPing, as well as several large earnings reports have encompassed most of the drive behind the volatile sentiment. Trump's rejection of Iran's proposal and a pullback in tech also triggered volatility, though by midweek the Nasdaq Composite (IXIC) and S&P 500 Index managed to tap more record highs.
The Dow Jones Industrial Average (DJI) struggled for half the week, before bouncing back above 50K by Thursday thanks to Cisco Systems' (CSCO) earnings blowout. Though this was short-lived, as a tech pullback and disappointment from investors surrounding the lack of policy change for the U.S.-China meeting triggered a Friday selloff. Only the S&P 500 is headed for a weekly win, its seventh straight and longest such streak since December 2023. Meanwhile, the Nasdaq is on pace to snap its sixth-straight weekly win streak.
Flashing Signals for Bulls and Bears
One of our favorite ways to look at a stock's risk/reward ratio is historic data. This week we took a look at why biotech TG Therapeutics (TGTX) and discount retailer Dollar General (DG) made excellent "buys" for bulls. Plus, this 3D printing stock made our list of Top Stock Picks for 2026.
We also shared a list of stocks with major short squeeze potential. Bears haven't been left out either, with AeroVironment (AVAV) flashing a historically bearish signal on the charts.
Tech Sector Obsession Takes Over
Micron (MU) kicked off the week with record highs, charging higher alongside its semiconductor peers. Also making noise was Cisco stock in a pre-earnings pullback, but not before tapping an all-time peak and continuing its surge after earnings. Meanwhile, Nebius (NBIS)also enjoyed a post-earnings pop, as China's Alibaba (BABA) shook off a sharp profit pullback.
A historic signal notified which defense tech stock you should avoid, while a revenue whiff was enough to cause D-Wave Quantum (QBTS) to falter. In the energy tech field, Nextpower (NXT) geared up for its fiscal fourth-quarter results.
All Eyes on Nvidia Earnings
Next week will bring a lighter economic calendar, though traders will still be watching several housing-related reports, fresh purchasing managers index (PMI) data, and the release of the Federal Reserve’s latest meeting minutes. Headlining earnings next week will be tech stalwart Nvidia (NVDA).
Schaeffer's Senior V.P. of Research Todd Salamone shares why you should stay bullish and the only time you should hedge, while Senior Quantitative Analyst Rocky White shares a market breadth study you don't want to miss.
