The Dow Jones Industrial Average and the other major indexes rebounded Wednesday, after Federal Reserve Chairman Jerome Powell indicated interest rate cuts are likely this year. Meanwhile, artificial intelligence leaders Nvidia and Super Micro Computer surged to record highs on the stock market today.
The Dow Jones Industrial Average rose 0.4% in morning action, as the S&P 500 climbed 0.6%. The tech-heavy Nasdaq composite gained 0.7% after the opening bell.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was up 0.7%, as the SPDR S&P 500 ETF rose 0.6%.
The 10-year Treasury yield ticked lower to 4.1% after the Fed issued prepared remarks from Powell. Further, oil prices looked to end a two-day losing streak, as West Texas Intermediate futures rose 1.5%, trading near $79.30 a barrel.
Nvidia stock rallied 2.7% Wednesday morning and is setting more record highs, more than 70% above a flat base's 505.48 entry. Nvidia is an IBD Leaderboard stock.
Super Micro stock jumped 4.1% after Argus Research started the stock with a buy rating and a 1,350 price target, a 24% premium to Tuesday's closing price. Shares also hit fresh record highs.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Stock Market Today: Powell Testimony
Wednesday's spotlight will be on Fed chief Powell's planned 10 a.m. ET testimony before the House Financial Services Committee. He then is to appear in front of the Senate Banking, Housing and Urban Affairs panel on Thursday.
In prepared remarks, Powell said the Fed remains attentive to inflation risks, but rate cuts are likely "at some point" this year.
"If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year," Powell said in a copy of his prepared remarks to the House Financial Services Committee.
"In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks," Powell continued. "The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."
In other economic news, ADP's employment report also came out early Wednesday. ADP showed jobs growth of 140,000 in February, missing estimates for growth of 150,000, but still up from January's 107,000 increase. ADP's employment report s a precursor to Friday's jobs report from the Labor Department.
Lastly, the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, showed a fall in job openings to 8.863 million in January, down from December's 9.026 million. They were expected to fall to 8.9 million.
Key earnings movers Wednesday included Abercrombie & Fitch, CrowdStrike, Foot Locker, Nordstrom, Ross Stores.
Abercrombie shares declined 2.5%, while CrowdStrike soared more than 15% in morning trades. Foot Locker stock plunged more than 26%, as Nordstrom shares dived 14%. Ross Stores declined nearly 1%.
Dow Jones Falls
On Tuesday, the Dow Jones Industrial Average and S&P 500 both moved down 1%, while the tech-heavy Nasdaq composite sold off 1.65%.
Tuesday's Big Picture column commented, "Headed into Tuesday, IBD's recommended invested percentage was 60% to 80%. It'll stay there for now, although leaning toward the 60% side probably makes more sense than 80% as distribution days start to proliferate on the Nasdaq."
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 Buy And Watch In Stock Market Today
Duolingo, Fifth Third Bancorp, Fortinet and Weatherford — plus Dow Jones components Disney, IBM and Procter & Gamble — are among the best stocks to buy and watch on the stock market today.
IBM and Duolingo were featured in this Stocks Near A Buy Zone column.
A great 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. There were no breakouts Tuesday, which made sense given the market weakness.
Meanwhile, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases, like Arch Capital. That stock is nearing a 88.77 buy point in a cup with handle.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: Disney Attempts Breakout
Disney is trying to break out past a big cup-with-handle base's 112.92 buy point, according to IBD MarketSurge chart analysis. Disney stock rose 0.4% Wednesday, moving back above the entry.
IBM stock is rapidly nearing a flat base's 196.90 buy point and is just 3% away from the entry. IBM shares climbed 0.9% Wednesday.
Consumer products giant Procter & Gamble fell 0.15% Tuesday, holding above a 158.38 buy point in a cup base. P&G stock edged up Wednesday.
3 Top Growth Stocks To Watch In The Stock Market Rally
Fifth Third Breaks Out
IPO Leader Duolingo is building the right side of a cup base that has a 245.87 buy point, but is looking to add a handle with sharp losses in recent sessions. Duolingo shares rebounded 2% Wednesday.
Fifth Third Bancorp rallied 2.4% Tuesday, breaking out past a 35.73 buy point. Shares fell 1.2% Wednesday.
Cybersecurity leader Fortinet is adding a handle to a long cup base, taking the buy point to 73.91. The stock rose 2.3% early Wednesday.
Oil stock Weatherford is back in buy range above a 102.65 buy point in a cup base. The 5% buy range tops out at 107.78. Weatherford shares advanced 2.4% Wednesday.
Best Bets On Stock Market Today
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Merck | 119.65 | Cup base | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Feb. 28, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven: Tesla
Among Magnificent Seven stocks, Tesla slipped 1.7% Wednesday in the wake of Tuesday's 3.9% skid. Early Wednesday, Morgan Stanley cut its price target on Tesla stock from 345 to 320. The brokerage maintained its overweight rating.
Tesla stock closed Tuesday at its lowest level since Feb. 5, with heavy losses in recent days. Shares remain sharply below their 50- and 200-day lines.
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 declined 2.8% Tuesday, sliding further below its long-term 200-day line. Shares were down 0.4% Wednesday morning.
Microsoft shares is again at the top of the buy range past a 384.30 buy point in a flat base, with a 3% slide Tuesday. The software giant dipped 0.1% on the stock market today.
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.
