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Investors Business Daily

Dow Jones Dives 525 Points On Hot CPI Inflation Report; Nvidia Stock Reverses

The Dow Jones Industrial Average dived 525 points Wednesday, as Wall Street reacted to a hotter-than-expected CPI inflation report. Meanwhile, Nvidia reversed higher, and Tesla sold off on the stock market today.

The Dow Jones Industrial Average tumbled 1.3% in morning action, while the S&P 500 was down 1%. The tech-focused Nasdaq composite sold off 1% after the opening bell.

The Labor Department said its March consumer price index rose 0.4% on the month, with a 3.5% annual increase. The monthly rise was hotter than the 0.3% estimate, while the annual increase matched Econoday estimates. Core inflation rose 0.4% in March, above the 0.3% estimate, with a year-over-year increase of 3.8%. That topped forecasts for 3.7%.

Now investors await minutes from the Federal Reserve's March policy meeting. Those are due Wednesday at 2 p.m. ET.

As the market fell, the 10-year Treasury yield jumped to 4.49%. Further, oil prices edged up following Tuesday's losses, as West Texas Intermediate futures traded around $85.90 a barrel.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was down 1%, and the SPDR S&P 500 ETF fell 1.1%.

Stock Market Today: Nvidia Reverses, Tesla Sinks

Among Magnificent Seven stocks, Nvidia reversed from early losses to rise 1.3%, while Tesla skidded 2.3% in Wednesday's early trading.

Nvidia is close to finishing a flat base that would create a buying opportunity at 974. Shares are in week five of a flat base, which means the entry would be valid after this week. Meanwhile, shares are closing in on the 50-day moving average line. The artificial intelligence giant is an IBD Leaderboard stock.

Tesla stock rallied another 2.3% Tuesday, adding to Monday's gains. Shares remain more than 40% off their 52-week highs.

Meanwhile, Taiwan Semiconductor Manufacturing, a major supplier to Nvidia and Apple, said revenue jumped nearly 17% from a year earlier, the biggest rise since 2022. TSMC was up modestly in morning action, holding just off new highs.

Elsewhere, Delta Air Lines rallied 2% early Wednesday after better-than-expected results for the first quarter. Shares could be set to break out past a 49.20 buy point.

Also, first-quarter earnings season heats up later this week with reports from big banks JPMorgan Chase, Wells Fargo and Citigroup.

Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.

Dow Jones Dips

On Tuesday, the Dow Jones Industrial Average inched lower, while the S&P 500 gained 0.1%. And the tech-heavy Nasdaq composite climbed 0.3%.

Tuesday's Big Picture column commented, "The stock market jumped in the final 45 minutes of trading Tuesday as investors prepared for the next inflation report from the Labor Department."

Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.

Learn How To Time The Stock Market With IBD's ETF Market Strategy

Best Stocks To Watch On Stock Market Today

Arista Networks, Broadcom, DraftKings and ServiceNow — plus Dow Jones components Salesforce, IBM and Verizon Communications — are among the best companies to watch on the stock market today.

ServiceNow is featured in this Stocks Near A Buy Zone column.

An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points, like HubSpot. Also, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases.

To find more stock ideas, check IBD Stock Lists like IBD 50Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.

Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard

Dow Jones: Salesforce, IBM, Verizon

Salesforce is trying to find support around its 50-day moving average, according to MarketSurge charts. A rebound would place the software leader in a new buy area. But investors need to wait for a decisive recovery. Shares also show a flat-base entry at 318.72. Salesforce stock dropped 1% in morning trades Wednesday.

IBM stock is searching for support at the 50-day line, with shares still below a flat base's 196.90 buy point. IBM stock was down 1.3% Wednesday.

Telecom giant Verizon's recent breakout attempt faltered further Tuesday amid four straight days of losses. Verizon shares were down 1% Wednesday morning.

4 Top Growth Stocks To Watch In The Stock Market Rally

Stock Market Today: DraftKings Gives Up Buy Point

Arista shares closed Tuesday in buy range above their 292.66 flat-base buy point, according to MarketSurge charts, even as they dropped nearly 1%. And on Wednesday, the stock dropped 1.9% in morning action.

AI player Broadcom is building a short consolidation with a 1,438.17 buy point. The price action looks like a flat base, but it's slightly too deep, with a depth of just over 16%. The maximum depth of a flat base is 15%. Broadcom stock lost 1% Wednesday.

DraftKings moved back below its 46.52 buy point in a short consolidation following early losses this week. And the sports-betting giant was down 0.5% Wednesday morning.

Finally, ServiceNow is moving closer to a flat base's 815.32 entry, but shares dipped 0.4% Tuesday. The stock lost 1.6% Wednesday.

IBD's latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Stocks To Watch

These are four stocks in or near buy zones in today's stock market.

Company Name Symbol Correct Buy Point Type Of Buy Point
Disney 112.92 Cup with handle
Arista Networks 292.66 Flat base
DraftKings 45.62 Consolidation
ServiceNow 815.32 Flat base
Source: IBD Data As Of April 1, 2024

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded lower after Wednesday's stock market open.

Apple stock moved up 0.5% Tuesday, still at its recent lows. Shares remain sharply below their long-term 200-day line. The stock fell 1.4% Wednesday morning.

Microsoft shares inched higher Tuesday, still holding above their 50-day line. And the stock moved down 1.2% early Wednesday.

Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.

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