Tuesday Outlook: Why The Market Will Continue Soaring + NLSP's 156% Pre-Market Surge

It’s Tuesday folks so I’ll keep this short and sweet. The market exploded yesterday and as of this morning U.S. Futures are hinting at a continued rally going into this morning's opening bell.

But the main question that’s surfacing this morning's trading session is: When will it end?

That’s the question every investor is asking themselves right now…

Which is why in today’s issue we’ll be uncovering the full blueprint as to why the market will continue soaring this year…

And of course, this morning's most explosive pre-market movers!

Let’s get to it! 

The Complete Guide: Why the Market Will Continue Soaring 

While the market has been on a rapid tear hitting All Time Highs after All Time Highs, it’s no secret that the bullish momentum in 2024 is here to stay. However, still with this kind of explosive price action back to back, many investors begin to grow weary with concern of when it may come crashing down as fast as it went up. 

Now of course, predictions about the market can seem like reading tea leaves, but in this commentary we’re going to discuss the key reasons as to why the market is set to continue soaring to new heights (for the time being). 

Let’s dive in! 

The Magic of Market Cap

First off, let’s get one thing straight: the S&P 500 isn’t just a random collection of 500 companies.  It’s a market cap-weighted index, which means the bigger the company, the more influence it has. Now of course, most investors know this, but it's important to grasp the overall tendency of why the market’s queen index has been moving as much as it has. In fact, think of it like a seesaw where the heavyweights on one side can lift the whole thing up. And right now, those heavyweights are doing some serious lifting.

Meet the Six Horsemen of Market Growth

So who has been propping the market up with its heavy lifting? Well we’re talking about the big guns here: Microsoft, NVIDIA, Apple, Amazon, Meta Platforms, and Alphabet. Combined, these six companies make up a whopping 31% of the entire S&P 500. So naturally when they move, the whole index moves. And guess what? They’re moving up—fast. 

Microsoft: The AI Juggernaut

Let’s start with Microsoft. Imagine Microsoft as a rocket ship fueled by AI and cloud services. Analysts are super bullish, expecting its stock to jump another 25%. Why? Because everyone and their grandma is using Microsoft’s Azure cloud and AI products. Plus, they’re making smart deals with other tech giants like Oracle and Alphabet. It’s like Microsoft is playing chess while everyone else is playing checkers.

NVIDIA: The AI Powerhouse

Next up is obviously NVIDIA, the first $3 Trillion company by market cap and the main driver powering the seismic AI Revolution. Their chips are in everything from gaming rigs to data centers. Analysts think NVIDIA’s stock could climb another 7%, and some even say that’s a conservative estimate. With AI booming, NVIDIA is like the gold mine supplying the prospectors.

Apple: The Comeback Kid

Then we have Apple. During the first of the year it no doubt experienced a rough patch, but as recent price action and news suggest it’s coming back with a vengeance.  Remember when Apple introduced the iPhone and changed the world? Well with it’s latest announcements, they’re aiming to do it again, this time with AI. They’re integrating ChatGPT into their Mac OS, which has analysts buzzing. Predictions are that Apple’s stock could see a 26% boost. It's like Apple found its second wind and is sprinting towards the finish line.

Amazon: The Titan of Two Worlds

Amazon is like a superhero with dual powers: strength in consumer sales and cloud services. Analysts have been upping their price targets, suggesting a potential 17% rise. Amazon’s ability to innovate and dominate multiple sectors keeps it ahead of the pack, much like a marathon runner who never seems to tire.

Meta Platforms: The Phoenix Rising

Meta is a fascinating story of resurgence. After hitting a low, it’s rebounding hard, driven by AI and renewed user interest. They’ve even started paying dividends and buying back shares, which has analysts predicting a 17% rise in stock price. Meta is like a phoenix, rising from the ashes stronger than ever.

Alphabet: The Steady Climber

Last but not least, Alphabet. It’s like the tortoise in the race—steady, reliable, and always moving forward. Analysts have raised their price targets by 50% year-over-year, with an additional 10% upside expected. Alphabet’s consistent growth in digital advertising and cloud services makes it a solid bet.

The Analyst Effect

Now, let’s talk about analysts. These folks are like the betters on DraftKings, setting the predictions and setting the expectations of what SHOULD happen in regards to where they are putting their money. And right now, they’re calling for big gains. 

Across the board, analysts are raising their targets for these top tech companies. This wave of positive revisions is like a tailwind pushing the market higher, because remember, while companies move on fundamentals… the real driver of growth comes from the emotions of the overall market. Which again, is extremely greed based that is fueling high valuations all across the market. 

But it doesn’t just stop with these monopolistic tech giants. 

The Broader Market Implications

While the top six tech giants are driving much of the S&P 500’s performance, their success has broader implications for the market. Their growth creates a ripple effect, benefiting other sectors and companies. Here’s how:

Supply Chain Benefits: Companies that supply components to these tech giants, like semiconductor manufacturers, also stand to gain. As demand for AI-driven products increases, so does the demand for the components that make these products possible. This creates a robust supply chain ecosystem, boosting the stock prices of these suppliers.

Investor Confidence and Market Sentiment: The success of these tech giants instills confidence in investors, leading to increased capital inflows into the market. When investors see consistent growth and innovation from industry leaders, they’re more likely to invest across the board. This positive market sentiment can drive the entire market higher.

Conclusion: Buckle Up for a Bullish Ride

So, here’s the bottom line: this is everything you need to know as to why the stock market is set to continue soaring throughout the last half of 2024.  The top holdings in the S&P 500, driven by technological innovation and AI advancements, are performing spectacularly. And while Analysts are optimistic, the broader market is benefiting from these successes. Let's not forget the impact that election year has on the market. Keep in mind that 24 out of the last 26 presidential election years have been positive market returns. So with this cherry on top factor, it’s no secret that we are currently on an express train heading straight for new heights. 

Which is why if you’re looking to get a piece of this action, don’t hesitate to do your own research and find what’s right for you. Because as we all know, the market is showing strong signs of continued growth, and being part of this rally could be highly rewarding in the near future. 
 

Top Pre-Market Stock Movers to Watch on Tuesday

Alright, alright, alright! In today’s pre-market session we have quite a few stocks igniting a frenzy this fine Tuesday morning. We’ve got a mix of new partnerships, earnings reports, acquisition deals, and more fueling these stock movements. Here’s a rundown of the biggest gainers you’ll want to keep an eye on.

1. NLS Pharmaceutics (NASDAQ: NLSP)

NLS Pharmaceutics is taking the spotlight today with its stock skyrocketing over 156% in heavy pre-market trading. This surge is catching everyone's attention, though specifics behind the jump aren't immediately clear. It seems like something significant is brewing in the pharma sector.

2. Actelis Networks (NASDAQ: ASNS)

Actelis Networks shares are soaring more than 137% after the company announced a new partnership with Carahsoft. This strategic alliance is evidently a big win for Actelis, boosting investor confidence and driving the stock upward.

3. MicroAlgo (NASDAQ: MLGO)

Despite no fresh news this morning, MicroAlgo sees its stock climbing over 25%. Sometimes, market moves can be mysterious, driven by underlying factors not immediately apparent in the headlines.

4. Silk Road Medical (NASDAQ: SILK)

Silk Road Medical is up more than 23% thanks to an acquisition agreement. Deals like these often signal growth and expansion, which investors typically respond to positively, pushing the stock higher.

5. Mustang Bio (NASDAQ: MBIO)

Mustang Bio continues its upward trajectory, gaining more than 22% as it progresses with its clinical study. Positive developments in clinical trials can significantly boost a biotech company’s stock, reflecting hopes for successful outcomes.

6. Fly-E Group (NASDAQ: FLYE)

Fly-E Group is flying high, rising over 21% after its recent public debut earlier this month. IPOs can generate substantial interest, and a successful entry into the market often leads to continued stock appreciation.

 7. Sonoma Pharmaceuticals (NASDAQ: SNOA)

Sonoma Pharmaceuticals' stock heads more than 21% higher following the release of its Q4 earnings report. Strong earnings reports can fuel investor optimism and drive stock prices up as they reflect the company’s solid performance.

8. Clene (NASDAQ: CLNN)

Clene shares are climbing more than 18%, buoyed by extended survival data. In the biotech world, positive clinical data can be a strong catalyst for stock movements, indicating potential future success in treatments.

9. Chegg (NYSE: CHGG)

Chegg is jumping 18% on news of job cuts and a restructuring plan. While layoffs are unfortunate, they can sometimes be viewed positively by investors as a move towards greater efficiency and profitability.

10. BioLine Rx (NASDAQ: BLRX)

BioLine Rx shares are up more than 17% this morning, even though there's no clear news driving the increase. Occasionally, stocks can surge due to behind-the-scenes developments or shifts in market sentiment.

Final Thoughts

Today’s pre-market movers are obviously presenting an interesting snapshot of what to expect throughout the trading session today.  From strategic partnerships and acquisitions to positive clinical data and restructuring plans, these catalysts are propelling stocks to new heights. So as the day unfolds, continue monitoring these stocks. You never know when a dip buying opportunity will show its face to capitalize on. 

Stocks.News has positions in Microsoft, Apple, Amazon, Meta Platforms, and Alphabet as mentioned in the article.