The Dow Jones Industrial Average maintained its position above the 50,000-point mark at Monday’s open, following a record high on Friday. The broader S&P 500 and the Nasdaq 100 also started the new trading week with gains. Among individual stocks, Microsoft, Oracle, AppLovin, and Robinhood stood out with significant price increases.
After initially rising to just above 50,219 points in early trading, the US benchmark index closed with a gain of 0.04 percent at 50,135.87 points. The broad market S&P 500 rose by 0.47 percent to 6,964.82 points. The technology-heavy Nasdaq 100 gained 0.77 percent to 25,268.14 points, continuing the recovery that began on Friday.
Microsoft was among the biggest winners in the Dow Jones. The company remains strongly positioned operationally – its cash flow, market position, and broad software base speak for the technology giant. However, today’s increase should be seen primarily as a technical rebound. Investors are taking advantage of the weakness of recent days to establish a first foothold.
The gains at Oracle were even more pronounced. Investment bank D.A. Davidson upgraded the stock from “Neutral” to “Buy” and reaffirmed its price target of $180. Analyst Gil Luria justified the move by stating that the risks had been overblown after the sharp price decline and that the company’s potential – particularly in the cloud and AI business – was not yet adequately reflected. The stock had come under pressure as investors critically viewed high investments in AI data centers, a large financing round, and risks from the partnership with OpenAI. Now, investors are capitalizing on the previously created weakness for re-entry.
AppLovin is also receiving attention from analysts, who emphasize that the recent price decline was exaggerated and the fundamental prospects remain intact – thanks to strong margins and a dominant position in the mobile ad-tech market. Jefferies strategists have reaffirmed their buy recommendation and cited a relatively high price target of $860.
Robinhood’s stock has been under pressure recently due to the sharp decline in Bitcoin & Co. After breaking the psychologically important $100 mark, the price accelerated its weeks-long downward trend, falling another roughly 28 percent within four trading days before a counter-movement began just above $70. Tomorrow, Tuesday, February 10th, after the US stock market closes, the figures for the fiscal year 2025 and the outlook for the coming quarters will reveal whether this decline was exaggerated.
The recent market activity reflects a complex interplay of factors. The cooling inflation picture, combined with a weakening job market, has reignited hopes that the Federal Reserve will continue its recent string of easing monetary policy. This expectation is providing a tailwind for risk assets, including stocks. However, investors remain cautious, as evidenced by the technical nature of some of the recent gains. The performance of companies like Microsoft and Oracle highlights the importance of strong fundamentals and positive analyst sentiment in navigating the current market environment.
The situation with Robinhood is particularly interesting. The company’s fortunes are closely tied to the performance of cryptocurrencies, which have experienced significant volatility in recent months. The upcoming earnings report will be crucial in determining whether the recent sell-off was an overreaction or a sign of more fundamental problems. Investors will be looking for evidence that Robinhood can continue to attract and retain customers, even in a challenging market environment.
The upgrade of Oracle by D.A. Davidson underscores the growing importance of cloud and AI technologies. The company’s investments in these areas are seen as a key driver of future growth. However, the analyst also acknowledged the risks associated with these investments, highlighting the need for careful execution and cost management.
AppLovin’s strong position in the mobile ad-tech market is another positive sign for the sector. The company’s ability to generate strong margins and maintain a dominant market share is attracting investor attention. However, the mobile ad-tech market is also highly competitive, and AppLovin will need to continue to innovate to stay ahead of the curve.
The Dow Jones’s ability to remain above 50,000 points is a significant milestone. It reflects the overall strength of the US economy and the positive outlook for corporate earnings. However, it is important to remember that the market is still vulnerable to unexpected shocks, such as geopolitical events or a sudden change in monetary policy.
