Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures. Okta reported Tuesday night with Nvidia on tap after the close.
The stock market rebounded strongly in a "TACO" Tuesday rally. TACO is a half-joking term that stands for Trump Always Chickens Out, referring to President Donald Trump's pattern of making big tariff threats only to back down in some fashion.
Trump on Friday said he would hike tariffs on European Union goods to 50% as of June 1. Over the weekend, he pushed that back to July 9.
Tesla powered past an aggressive entry Tuesday. Chili's parent Brinker International, Uber Technologies, Interactive Brokers, On Holding and Sanmina also broke out or cleared other buy points.
After the close, Okta beat views and guided up for the current quarter, but only reaffirmed 2025 targets. The cybersecurity stock plunged more than 10% late, signaling a move back below a buy point.
Tesla stock and Uber are on IBD Leaderboard. Interactive Brokers stock and On Holding are on SwingTrader. On Holding stock is on the IBD 50. On Holding was Tuesday's IBD Stock Of The Day.
The video embedded in the article reviewed Tuesday's bullish market action and analyzes On Holding, Brinker and Nvidia stock.
Dow Jones Futures Today
Dow Jones futures were flat vs. fair value. S&P 500 futures climbed 0.1% and Nasdaq 100 futures rose 0.3%.
The 10-year Treasury yield edged higher to 4.44%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally's TACO Tuesday
The stock market cheered President Trump's decision to push back 50% EU tariffs. Lower Treasury yields also helped. The major indexes jumped on TACO Tuesday and leaders powered higher.
The Dow Jones Industrial Average popped 1.8% in Tuesday's stock market trading, rebounding from its 21-day line to just shy of its 200-day. The S&P 500 index ran up 2.05% after testing its 200-day on Friday. The Nasdaq composite jumped 2.5%, nearly recouping all of last week's losses. The small-cap Russell 2000 also popped 2.5%.
The Invesco S&P 500 Equal Weight ETF advanced 1.9%, back above its 200-day line.
A large number of leading stocks that forged handles in last week's market pullback broke out or flashed buy signals Tuesday.
U.S. crude oil prices fell 1% to $60.89 a barrel.
The 10-year Treasury yield slumped eight basis points to 4.43%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 2.2%. The iShares Expanded Tech-Software Sector ETF advanced 1.8%. The VanEck Vectors Semiconductor ETF also popped 1.8%. Nvidia stock is the dominant position in SMH.
Reflecting more-speculative story stocks, ARK Innovation ETF jumped 3.5% and ARK Genomics ETF rebound. Tesla stock is the No. 1 holding across Ark Invest's ETFs.
The Industrial Select Sector SPDR Fund rose 1.8%. with Uber stock a position.
The Financial Select SPDR ETF also gained 1.8%.
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Tesla Stock
Tesla stock rose 1% in premarket trade.
Shares jumped 6.95% to 362.92 on Tuesday, clearing a 354.99 aggressive entry from a handle that was too low in the deep base to be proper. TSLA stock is 30% above its 200-day line. Shares are soaring even as Tesla sales continue to deteriorate, as investors bet big on the limited Tesla robotaxi launch next month in Austin, Texas.
Other Stocks In Buy Areas
Uber stock climbed 1.4% on Tuesday 89, rising within a buy zone after testing the 87 entry on Friday.
Brinker stock leaped 6.85% to 165.12, breaking a downtrend and briefly topping a 165.34 short-term high intraday. EAT stock is working the right side of a consolidation going back to early February. Several restaurant stocks are looking strong.
On Holding stock climbed 3.8% to 60.68, topping a 60.42 cup-with-handle buy point. On Friday, ON stock had a bullish shakeout, slashing early losses due to the market and as rival Deckers plunged following its results.
Interactive Brokers stock gained 2.9% to 212.53, above a 212.28 cup-with-handle entry.
Sanmina stock climbed 2.9% to 86.61, above an 86.31 cup-with-handle entry, according to MarketSurge.
Nvidia Earnings In Focus
Nvidia earnings and guidance Wednesday night will be critical for the wide-ranging AI sector and the overall market rally. Analysts expect the AI chip leader's earnings to rise 20% vs. a year earlier in the April-ended first quarter, but they've slashed views over the past week due to expanded U.S. export curbs. Revenue should swell 66% to $43.34 billion.
Nvidia stock rose 3.2% to 135.50, just below a 137.40 buy point from a weekly handle.
Broadcom and Taiwan Semiconductor both climbed 3% to peek above cup-with-handle buy points.
But buying these stocks right ahead of earnings is highly risky.
Just those three stocks have over $4.4 trillion in market cap, with Nvidia's results having a much-wider impact.
Why This IBD Tool Simplifies The Search For Top Stocks
What To Do Now
The stock market rally showed bullish action Monday. Yes, the market remains news driven, but tariff headlines are no longer having the massive whipsaw action from several weeks ago. Bottom line, the general trend is higher and leading stocks are acting well with new buying opportunities available.
Investors should be heavily invested in the current market. Keep looking for new or add-on buys, either to add exposure or to replace lagging positions.
Work on watchlists.
Nvidia earnings will be critical. Be aware of how much exposure you have, not only to NVDA stock and other chip names, but to the broader AI chip space including energy producers, cooling plays and more.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
