Dow Jones futures rose sharply on Wednesday morning, along with S&P 500 futures and Nasdaq futures, buoyed by comments from a top Bank of Japan policymaker. AI game Supermicrocomputer (SMCI) fell overnight on disappointing earnings and weak outlook.
Bank of Japan Deputy Gov. Shinichi Uchida said last night that the BoJ will not raise interest rates further if markets are unstable, sending the yen sharply lower against the dollar and lifting Dow futures.
A rising yen after the BoJ’s rate hike last week fueled the recent global sell-off.
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Stocks Soar; Palantir, Intuitive Surgical and Tenet Healthcare in the Spotlight
The stock market recovered on Tuesday after several days of heavy losses, despite a late setback. Nvidia (NVDA) and Meta platforms (META) led megacaps, while Free market (MELI) broke out and AI played Palantir Technologies (PLTR) rose by a gap on earnings.
But this is only the first day of an attempted market recovery.
Dow Jones Futures Today
Dow Jones futures rose 0.8% vs. fair value, with Disney shares the blue chip. S&P 500 futures rose 1.1% and Nasdaq 100 futures jumped 1.2%.
Futures pared small losses on Tuesday evening after comments from BOJ’s Uchida.
The 10-year Treasury yield climbed to 3.93%. Crude oil rose 2%.
Please note that trading Dow futures and other markets overnight does not necessarily result in actual trading during the next regular trading session.
Key Wins
Amgen (AMGN), Nvidia partner Super Micro, Tesla (TSLA) rival Rivian (National government) Toast (TOST), Exelixis (RASH), Halozyme (HALO), Fortune (FTNT), Airbnb (ABNB) and recent IPO Reddit (RDDT).
Fortinet shares rose, signaling a move above key levels after hitting a 2024 low on Monday. Halozyme jumped and Exelixis rose, and both could be actionable Wednesday. Reddit shares rose slightly after steep losses on Tuesday night.
On the negative side, Super Micro shares fell sharply after missing its fiscal Q4 outlook and giving mixed guidance. Investors waved off a planned 10-for-1 stock split.
Airbnb shares fell as the travel site warned of weaker demand. Toast and Rivian shares fell sharply. Amgen shares also fell sharply, signaling a move below a buy point.
Walt Disney (DIS), reporting Wednesday morning, topped ratings as the combined streaming services turned a profit for the first time. Shares were little changed in active trading.
New Nordisk (NVO), even before the open day, withdrew strongly. Competitor for slimming product Eli Lilly (LLY) is expected Thursday morning.
Nvidia stock is on Leaderboard. MercadoLibre is on the flagship IBD 50 list. The video embedded in the article discusses Tuesday’s market action and analyzes PLTR stock, Intuitive Surgery (ISRG) and Tenet Healthcare (THC content).
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Stock market rally attempt begins
The stock market rally saw a revival Tuesday after big losses in the previous three sessions. The major indexes all gave up gains in the final hour and hit resistance near Friday’s lows.
The Dow Jones Industrial Average rose 0.8% in stock trading Tuesday, reaching resistance at its 50-day line. The S&P 500 index climbed 1%. The Nasdaq Composite rose 1% after bouncing off its 200-day line on Monday. The small-cap Russell 2000 rose 1.2%, approaching its 50-day line after finding support at its 200-day line on Monday.
A one-day bounce is not that meaningful. Tuesday marked day one of an attempted rally in the stock market. Look for a follow-through day, starting Friday, to confirm the attempted rally.
US crude oil prices rose 0.4% to $73.20 a barrel.
The 10-year US Treasury yield rose 10 basis points to 3.89% as global financial conditions normalise.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 2.45%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.5%, with Palantir shares included in the ETF. The VanEck Vectors Semiconductor ETF (SMH) rebounded 1.95%. Nvidia shares are the No. 1 holding in SMH.
Reflecting stocks with more speculative stories, the ARK Innovation ETF (ARKK) rose 1.5% and ARK Genomics (ARKG) rose 1.55%. Tesla shares are a notable holding in ARK Invest’s ETFs.
The SPDR S&P Metals & Mining ETF (XME) rose 1%. The SPDR S&P Homebuilders ETF (XHB) and Energy Select SPDR ETF (XLE) each gained 0.6%.
The Health Care Select Sector SPDR Fund (XLV) rose 0.5%. The Industrial Select Sector SPDR Fund (XLI) rose 1.2%. The Financial Select SPDR ETF (XLF) rose 1.6%.
Time The Market with IBD’s ETF Market Strategy
Stocks to watch
Nvidia shares rose 3.8% to 104.25 on Tuesday, extending a rebound from Monday’s intraday lows. The AI ​​chip leader is still below all of its 10-day, 21-day and 50-day moving averages, so there’s work to be done. But it’s important to watch how the market’s most important stock is behaving.
Shares of NVDA rose slightly overnight after Super Micro’s results and guidance and comments from the Bank of Japan.
Meta stock rose 3.9% to 494.10, just touching its 50-day line. But the tech giant needs more time to form a new base.
MercadoLibre shares rose 1.9% to 1,180.39, closing above the 1,792.05 cup-with-handle base buy point. On Friday, MELI shares rose above an early entry of 1,764.50 on a burst of gains. Shares held that entry on Monday after briefly falling to their 50-day range.
Palantir shares rose 10.4% to 26.59 on Tuesday after strong earnings, accelerating revenue growth and optimistic guidance. Shares are close to a previous buy point of 27.50 that investors can still use. On Monday, PLTR tested its 200-day line before cutting its losses sharply.
What to do now
If a market rally lasts for several weeks or months, you want to capture the majority of that progress. But if you try to guess when exactly a rally will start, you risk getting burned multiple times.
Waiting just a few days for a follow-through day reduces the risk of getting in too early, but even that is no guarantee. Many confirmed uptrends fail.
Right now, investors need discipline. That means staying engaged in the market while remaining patient. It also means continuing to work on watchlists, focusing on stocks that are holding key levels and showing relative strength. You don’t want to ignore the market, miss new rallies, and rush to find stocks to buy.
Read The Big Picture every day to stay up to date on market developments and the most important stocks and sectors.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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