The Dow Jones Industrial Average and other major stock indexes rose Wednesday, as Wall Street reacted to the potential start of U.S.-China trade talks. Next, the Federal Reserve's interest-rate decision and subsequent comments from Fed Chairman Jerome Powell are scheduled for later in the session. Meanwhile, cybersecurity leader CrowdStrike tumbled on layoff news.
After the opening bell, the Dow Jones Industrial Average rose 0.6%. The S&P 500 gained 0.4% as the tech-heavy Nasdaq composite moved up 0.3%.
The 10-year Treasury yield ticked down to 4.3% early Wednesday. Meanwhile, oil prices fell, as West Texas Intermediate futures traded near $59.05 per barrel.
Among exchange traded funds, the Invesco QQQ Trust gained 0.3%, while the SPDR S&P 500 ETF moved up 0.4% after the open.
CrowdStrike said in a regulatory filing Wednesday that the company would lay off about 5% of its workforce, or 500 jobs. Barron's reported that the company was taking advantage of efficiencies, thanks to artificial intelligence initiatives. But the company still plans to keep hiring in key strategic areas this fiscal year, Barron's said.
CrowdStrike shares tumbled 4% in morning action Wednesday.
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U.S.-China Trade Talks To Start
Treasury Secretary Scott Bessent and U.S. Trade Rep. Jamieson Greer will meet with high-level Chinese officials later this week, according to late Tuesday releases from the Treasury Department and Office of the U.S. Trade Representative.
Bessent is expected to meet with Vice Premier He Lifeng, while Greer is due to speak with his counterpart. Those would be the first U.S.-China trade talks.
The conversations will be an effort to de-escalate tensions vs. focusing on a big trade deal. Trump tariffs on China have skyrocketed to 145% vs. most Chinese goods. Meanwhile, China has retaliated with 125% duties on American goods.
Stock Market: Powell Comments Due
The Federal Reserve's two-day meeting ends Wednesday with an interest rate decision at 2 p.m. ET. Markets see little chance of a rate cut, so the focus will be on Fed Chairman Jerome Powell's news conference, and on any shift in his thoughts on how tariffs will affect inflation.
Powell has stressed that what matters for monetary policy is the full spectrum of Trump policies, including not just tariffs, but fiscal, immigration and regulatory changes. Further, Powell has said that the strong economy allows the Fed to wait for clarity on forthcoming policies before resuming rate cuts from the current restrictive level.
That stance essentially ruled out a rate cut on Wednesday. Following Friday's jobs report, markets are now also betting against a rate cut at the June 18 Fed meeting. Odds of a cut tumbled to 32% from 66% a week ago, according to CME Group's FedWatch tool.
Markets still see 80% odds of a rate cut at the July 30 Fed meeting, though that's down from 95% a week ago. For the full year, markets now see a likelihood of 75 basis points in rate cuts. Odds of a full point worth of cuts have slipped to 41% from 68% a week ago.
In stocks, Wednesday's earnings movers include Advanced Micro Devices, Arista Networks, Rivian Automotive and Super Micro Computer.
AMD stock climbed nearly 2% in early action, while shares of Arista stock tumbled 7%. Rivian stock slipped 0.6%, as Super Micro stock sold off 4%.
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Dow Jones Falls
On Tuesday, blue chips on the Dow Jones Industrial Average moved down 1%, or 389 points, while the S&P 500 lost 0.8% and the Nasdaq declined 0.9%.
Due to current market volatility, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are MercadoLibre, Booking and Commvault.
Along with Apple and Nvidia, Dow Jones components also making notable moves this week were Amazon.com, Microsoft and Boeing.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Boeing Hits Buy Point
Shares of Dow Jones component Boeing sank 0.3% Wednesday, still above a double-bottom entry at 184.40, according to MarketSurge chart analysis.
Outside the Dow, e-commerce giant MercadoLibre is back in buy range above a 2,202 entry in a double-bottom base. MercadoLibre stock climbed 0.8% Wednesday.
Meanwhile, IBD SwingTrader stock Booking is rapidly approaching a 5,282 buy point in a double bottom. Booking stock moved up 0.7%.
Finally, recent IBD Stock Of The Day Commvault closed Tuesday just shy of a 174.58 double-bottom entry. Commvault shares rose 0.4% early Wednesday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Wednesday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Boeing | 184.40 | Double bottom | |
| Spotify | 621.20 | Double bottom | |
| Penumbra | 288.57 | Double bottom | |
| MercadoLibre | 2,202.00 | Double bottom |
Source: IBD Data as of April 30
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Dow Jones Leaders: Amazon, Apple, Microsoft
Magnificent Seven stocks are rebounding from lows as Wall Street reacts to the fallout from President Trump's tariffs. One of them, Dow Jones component Amazon, is attempting to regain its 50-day line for the first time since Feb. 14. And Amazon stock rose 1.5% in early action on Wednesday, looking to snap a three-day losing streak.
IPhone maker Apple extended a losing streak to three sessions Tuesday following last week's earnings report. Apple shares dipped 0.3% early Wednesday.
Microsoft stock shot up last week, retaking its 200-day line for the first time since Jan. 29. The software giant added 0.3% Wednesday morning.
Also, Tesla inched higher in early action Wednesday after two days of losses, continuing to see stout resistance at the long-term 200-day moving average. Led by Chief Executive Elon Musk, the electric-vehicle maker remains around 42% off its record high of 488.54, reached on Dec. 18.
And Nvidia stock was down 0.2% in morning moves. Shares of the AI giant are holding above their 50-day moving average following last week's bullish move.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
