In the early hours of Wednesday, Dow Jones futures remained steady, mirroring the stability seen in S&P 500 futures and Nasdaq futures. Despite a higher-than-expected core CPI inflation reading on Tuesday, the stock market rally showed resilience, with Oracle (ORCL) surging on earnings and Nvidia (NVDA) rebounding. Tech giants like Microsoft (MSFT) and ServiceNow (NOW) also displayed strong performances, propelling the S&P 500 to a new all-time high. However, market breadth was lacking, indicating some underlying weakness.
Several companies, including Shockwave Medical (SWAV), Archrock (AROC), and Symbotic (SYM), flashed buy signals on Tuesday, presenting investors with potential buying opportunities. However, the window for such opportunities may be short-lived, as demonstrated by Dollar Tree’s (DLTR) decline on weak results early Wednesday. Additionally, Tesla (TSLA) faced a downgrade from Wells Fargo, leading to a drop in its stock price.
Nvidia and ServiceNow are currently featured on IBD Leaderboard, while ServiceNow is also on SwingTrader. Microsoft holds a position on IBD Long-Term Leaders, and Nvidia, Symbotic, and Shockwave are part of the IBD 50. Archrock was highlighted as Tuesday’s IBD Stock Of The Day.
In the pre-market session, Dow Jones futures saw a 0.1% increase compared to fair value, while S&P 500 futures edged higher and Nasdaq 100 futures experienced a slight decrease. Crude oil futures surged by over 1%, and Bitcoin rallied above $73,000, reaching a new all-time high. However, it’s essential to note that overnight movements in Dow futures and other indices may not necessarily translate into actual trading during the regular stock market session.
The stock market rally showcased strength despite elevated CPI data, driven by notable performances from tech giants like Nvidia, Oracle, Microsoft, and Meta Platforms (META). The Dow Jones Industrial Average rose by 0.6%, reaching above key moving averages and the 39,000 level. The S&P 500 index gained 1.1%, setting a new closing high, while the Nasdaq composite jumped by 1.5%. Despite these gains, decliners narrowly surpassed advancers, with the small-cap Russell 2000 experiencing a fractional decline.
Overall, the market rally remains resilient, with various sectors showing potential for growth. While some stocks may be extended, opportunities exist in sectors like software, medical products, and energy. Investors are advised to maintain a watchlist and identify emerging opportunities before they become overextended. Stay updated with market trends and leading stocks by reading The Big Picture daily and following market updates on social media platforms like Twitter.