Dow Jones Futures Edge Lower as Amazon, Broadcom, Meta, and Palantir Approach Key Buy Zones
U.S. equity futures traded slightly down ahead of Tuesday’s market open, following a rebound on Monday after an initial selloff triggered by Moody’s downgrade of the U.S. credit rating. The Dow Jones Industrial Average gained over 130 points on Monday, buoyed by select technology and semiconductor stocks showing promising technical setups.
Amazon (AMZN) held firm near its 200-day moving average, just below a critical buy point of 214.84, reflecting a developing handle on a cup base pattern. The stock slipped marginally in after-hours trading but remains poised for a potential breakout.
Broadcom (AVGO), highlighted as both IBD Stock of the Day and an IBD SwingTrader pick, is forming a handle with a prospective entry at 235.28 ahead of its fiscal Q2 earnings release on June 5. The shares saw a slight decline in extended trading.
Meta Platforms (META) is carving out a cup base with an optimal buy point at 740.91, while also nearing an early entry level of 662.67, marked by the May 14 high. Meta’s shares dipped modestly late Monday.
Palantir Technologies (PLTR) is retracing to a 125.25 cup-with-handle entry point following last week’s breakout, closing just above this level but easing 0.2% in after-hours trading.
On the macro front, the Dow Jones Industrial Average rose 0.3% (137 points) on Monday, with the S&P 500 and Nasdaq showing modest gains of 0.1% and slight increases, respectively. Ahead of Tuesday’s open, futures for the Dow, S&P 500, and Nasdaq 100 declined by 0.1%, 0.2%, and 0.3%, respectively, signaling cautious investor sentiment.
The 10-year U.S. Treasury yield ticked up to 4.47%, while West Texas Intermediate crude oil prices settled near $62.10 per barrel, reflecting ongoing market dynamics.
Market participants are advised to monitor technical breakouts and consider methodical capital deployment amid the ongoing rally. Resources such as IBD MarketSurge’s “Breaking Out Today” and “Near Pivot” lists provide daily insights into stocks approaching key buy points. Investors should also review IBD’s Big Picture column for updated market exposure recommendations.
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