Dow Jones futures rose solidly early Thursday, along with S&P 500 futures and Nasdaq futures, signaling a positive day two reaction to the Federal Reserve meeting. On Wednesday, the stock market whipsawed but ultimately closed mixed after the Fed cut rates and predicted more.
Nvidia said it will take a $5 billion stake in Intel as part of a new partnership. Nvidia rose and Intel skyrocketed.
Dow giant American Express added to Wednesday's breakout. Meta Platforms edged higher, still above early buy points, after CEO Mark Zuckerberg touted new smart glasses Wednesday night.
Meta stock is on SwingTrader. Nvidia stock is on the IBD 50 and IBD Sector Leaders.
The video embedded in the article reviews Wednesday's market action and analyzes American Express stock, Nvidia and MP Materials.
Dow Jones Futures Today
Dow Jones futures advanced 0.5% vs. fair value. S&P 500 futures climbed 0.7% and Nasdaq 100 futures jumped 1.1%, both pointing to record highs.
The 10-year Treasury yield edged down to 4.06%.
Crude oil futures rose slightly.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Fed Meeting As Expected
As expected, the Fed cut rates by a quarter point. The lone dissent was from new Trump appointee Steven Miran favoring a half-point rate cut. The Fed's "dot-plot" forecasts by individual policymakers points to 50 basis points in further cuts by year-end, also in line with views.
Notably, the Fed is only penciling one rate cut for 2026, less than markets have predicted.
Fed chief Jerome Powell said future cuts would be on a meeting-by-meeting basis.
Still, after the Fed rate cut and Powell comments, markets upped their already-strong bets for rate cuts in late October and in December.
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Stock Market Rally
The stock market rally swung up and down following the Fed rate cut and Powell press conference. The major indexes ultimately closed mixed, about where they were before the Fed news.
The Dow Jones Industrial Average rose 0.6% in Wednesday's stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite retreated 0.3% after sinking 1.2% at one point. The small-cap Russell 2000 rose 0.2% after flirting with a record close.
Financials generally did well, while homebuilders reversed sharply lower.
U.S. crude oil prices fell 0.73% to $64.05 a barrel.
The 10-year Treasury yield rose five basis points to 4.07% after briefly undercutting 4%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF climbed 0.8%. The iShares Expanded Tech-Software Sector ETF rose 0.4%. The VanEck Vectors Semiconductor ETF declined 0.6%. Nvidia stock is still the dominant component.
ARK Innovation ETF slipped 0.4% and ARK Genomics ETF declined 1.05%.
SPDR S&P Metals & Mining ETF shed 0.6% SPDR S&P Homebuilders ETF gave up 1%. The Energy Select SPDR ETF advanced 0.25% and the Health Care Select Sector SPDR Fund edged up 0.2%.
The Industrial Select Sector SPDR Fund declined 0.4%.
The Financial Select SPDR ETF popped 1%, with AXP stock a key holding
Best Growth Stocks To Buy And Watch
Nvidia To Invest In Intel
Nvidia will invest $5 billion in struggling giant Intel, part of a new partnership to co-develop new data center and PC products. The U.S. government recently took a significant stake in Intel, converting CHIPS Act subsidies into an equity stake.
Intel stock gapped up nearly 30% before the open. Nvidia stock rose 3%. Taiwan Semiconductor, which could lose some Nvidia foundry business to Intel, fell more than 2%.
On Wednesday, Nvidia fell 2.7% to 170.21, moving decisively below the 50-day moving average. NVDA stock still has a 184.48 flat-base buy point, according to MarketSurge.
China's Cyberspace Administration ordered the country's biggest companies, including Alibaba and Bytedance, to stop buying Nvidia's AI chips, The Financial Times reported Wednesday.
American Express Adds To Breakout
American Express stock rose 1% before the open. AXP stock gained 2.7% on Wednesday to 336, reclaiming a 329.14 cup-base buy point and topping a 332.46 high-handle entry.
Meta's Zuckerberg Speaks
CEO Zuckerberg gave his keynote address at Meta's Connect developers conference Wednesday night, touting smart glasses as "the ideal form factor for personal super intelligence." He showcased some new AI-powered smart glasses, as expected, but with some technical glitches.
Shares rose a fraction early Thursday.
Meta stock edged down 0.4% to 775.72 on Wednesday. Shares held above an early entry of 766.51 and a downward-sloping trendline cleared earlier in the week. Meta is on track to have a 796.25 flat-base buy point after this week.
What To Do Now
The stock market rally had a bumpy ride Wednesday afternoon but ultimately wasn't that affected by Powell and the expected Fed rate cut and outlook. The major indexes and even the Russell 2000 are near record highs.
Keep in mind that the stock market often has a day two reaction to Fed meetings. Futures suggest that Thursday could be a strong upside day 2 move.
Still, investors can be looking to add exposure or too make new buys or add-on purchases while cutting relative laggards.
If you're stepping on the gas, be ready to slam on the breaks. Know your speed limit.
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