The Dow Jones Industrial Average and other major stock indexes posted big gains Tuesday as investors seemed to take comfort from a tentative ceasefire between Israel and Iran. On the stock market today, traders also appeared to shrug off Federal Reserve Chairman Jerome Powell's insistence that interest rates should remain intact.
The Dow finished the day up 1.2%, or 507 points. The 30-stock index held support at its 200-day moving average after closing a hair above it Monday. The S&P 500 increased by 1.2% and moved well above the 6,000 level after retaking that threshold on Monday.
The Nasdaq composite led all major indexes as it surged 1.4%. The tech-heavy index now has its sights set on the 20,000 level. Small caps on the Russell 2000 index also added 1.4%. The Russell is well above the benchmark 2,100 level but remains below its 200-day line.
Volume was lower on the Nasdaq exchange and the New York Stock Exchange compared with Monday. Advancers beat decliners by roughly 3-to-1 on both exchanges.
The 10-year Treasury yield eased to just under 4.3%. Oil prices tumbled 5.2% to around $64.95 a barrel. And bitcoin climbed 2.6% to clear the $105,600 level.
Among exchange traded funds, the Invesco QQQ Trust gained 1.5%, and the SPDR S&P 500 advanced 1.1%. The Innovator IBD 50 ETF jumped 1.1%.
3:50 p.m. ET
Online Education Stock Plummets
Duolingo plunged 6.2% and fell back below the 441.76 buy point after breaking out of a cup base in early May. Shares gave back a 23% gain from the entry, which triggered a round-trip sell signal. The language learning stock fell further below its 50-day moving average, tripping another sell signal.
The giant drop followed news that the company's cofounder, Severin Hacker, had sold 10,000 shares of Duolingo.
3:08 p.m. ET
Stock Market Today: This Biotech Catapults Higher
Nektar Therapeutics rocketed up 165% in enormous volume, after reaching every goal in a midstage study of its eczema treatment. Shares reclaimed their 200-day line and revisited a level not seen since May 2024.
IBD 50 stock Robinhood was hoisted 7% on the stock market today. Shares are closing in on their all-time high of 85, reached on Aug. 4, 2021, shortly after the online brokerage platform stock started trading. On Monday, famed investor and chief investment officer of ARK Invest, bought 319,640 shares of Robinhood.
2:21 p.m. ET
This Chip Stock Spikes While A New Issue Breaks Out
Ambarella surged 18% in huge volume following Bloomberg news that the semiconductor designer is contemplating selling the company.
The stock tested its 200-day line Tuesday, seeking support. However, shares have underperformed, as seen in Ambarella's weak 22 IBD Relative Strength Rating.
Recent new issue SailPoint notched a 3.2% gain and broke out of a cup-with-handle base with a 24 buy point. The IBD MarketSurge Growth 250 name is in a buy range that extends to 25.20.
SailPoint operates an identity security platform used by enterprise organizations to manage and secure access to data and applications.
1:17 p.m. ET
Powell Remains Steadfast On Interest Rates
Testifying before the House Financial Services Committee Tuesday, Powell reiterated the Federal Reserve's commitment to keeping inflation under control, and that policymakers should stand by as they wait to see how tariffs will affect prices.
"The effects of tariffs will depend, among other things, on their ultimate level," Powell said Tuesday afternoon.
"The FOMC's obligation is to keep longer-term inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem," Powell added.
He pointed out that the inflation level is still above the Fed's 2% target, adding weight to the decision to hold off on rate cuts. He added that inflation is expected to rise to 2.3% in the May reading, with the number without food and energy increasing to 2.6%. Both estimates are higher than April's results.
He also stressed the strong economy and labor market.
The Fed is due to meet again in July.
12:24 p.m. ET
Cruise Line Stocks Look Sunny
In stocks, cruise lines sprinted higher, led by Carnival after the company topped fiscal second-quarter earnings and sales estimates. Carnival stock surged more than 7% higher in heavy volume and is now extended from a 5% buy zone out of a cup-with-handle base with a 23.46 buy point.
Viking Holdings enjoyed a boost of more than 3% in sympathy with Carnival stock. Shares also topped the buy zone of a cup-with-handle base with a 48.58 entry point.
In similar fashion, Royal Caribbean Group forged ahead 2.5% and is extended from the buy range of a cup-with-handle base with a 255.80 buy point. Shares reached a record high on the stock market today.
In tech stocks, Broadcom jumped more than 3% and was near the top of a buy zone out of a 24-week consolidation. Broadcom is ranked first in Investor's Business Daily's Electronics-Semiconductor Fabless group with an overall Composite Rating of 98.
11:36 a.m. ET
Stock Market Today: Coinbase, These IPO Names Rally
A member of the IBD 50 list, Coinbase Global popped more than 9% in heavy volume as it heads back near its December 52-week high. The cryptocurrency exchange stock has rocketed around 32% higher over the last four trading sessions.
Recent initial public offering and IBD 50 component, CoreWeave, regained 4% of Monday's 5.4% drop. Shares are back near their all-time high reached Friday.
Another new initial offering, eToro, rallied nearly 6% and tested up to its 21-day line, finding resistance.
10:35 a.m. ET
Treasurys Up, Consumer Confidence Down
The 10-year Treasury yield inched up to 4.33%. Oil prices sank 2.9% to around $65.60 a barrel. Bitcoin climbed to around $105,200.
Among exchange traded funds, the Invesco QQQ Trust gained 1%, and the SPDR S&P 500 advanced 0.7%. The Innovator IBD 50 ETF jumped 0.9%.
In economic news, The Conference Board's Consumer Confidence reading for June fell sharply to 93 vs. the 99 expected and lagged May's revised 98.4 result.
Stock Market Today: IBD 50 Names On The Move
Snowflake, a member of the IBD 50 list, moved more than 3% higher after Morgan Stanley set a price target of 262 on the data storage stock with an overweight rating. Shares reached a 20% profit zone from a cup-with-handle base with a 184.29 buy point.
TSS jumped more than 6% to a record high on the stock market today. Shares are on pace for six straight days of gains and are showing "ants indicators," according to IBD MarketSurge analysis.
IBD 50 name GeneDx Holdings added more than 11% to Monday's 19% jump. Monday's move came following news the American Academy of Pediatrics now recommends genome sequencing as a first step in testing children with global developmental delay or intellectual disabilities.
9:46 a.m. ET
Tesla Drops, Uber Rises
In stocks, Tesla dropped 0.4% Tuesday in the wake of robotaxi-fueled gains of more than 8% from Monday. The company conducted what was considered to be a successful demonstration of its driverless vehicles in Austin, Texas. Shares are near a 367.71 buy point, the high price on May 29.
Big movers Tuesday included Uber Technologies and Circle Internet Group. Uber stock jumped more than 4%, rebounding from the 50-day line. Circle stock was volatile, making big swings between positive and negative territory. Shares were down nearly 2% in recent action.
8:54 a.m. ET
Powell Reaffirms Wait-And-See Approach
In prepared remarks Tuesday, Powell said, "For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance."
Instead, Powell believes that solid economic activity in recent months means officials can study inflation and employment data to determine the central bank's next action.
Powell is due to speak in front of Congress Tuesday and Wednesday.
8:08 a.m. ET
Stock Market Today: Trump Ceasefire, Powell Next
Overnight, Trump announced a ceasefire in the Iran-Israel conflict on Truth Social, saying "THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!"
But there were already reports of continued attacks by both sides. Trump warned Israel against dropping bombs as the ceasefire got off to a tenuous start.
Meanwhile, Fed Chair Powell is due to give his semiannual monetary policy report Tuesday in front of the House Financial Services Committee at 10 a.m. ET. On Wednesday, Powell is scheduled to speak before Senate Committee on Banking, Housing, and Urban Affairs.
Elsewhere, key earnings movers included KB Home and Carnival. Shares of KB Home declined more than 1%, while Carnival stock advanced nearly 3% in premarket trading.
Tesla, Broadcom Recharge This Elite List Of 17 Stocks
Dow Jones Leader Disney Above Buy Point
Elsewhere, Dow Jones media giant Walt Disney is in a 5% buy zone past a 113.44 buy point in a handle entry, MarketSurge chart analysis shows. Shares added 0.6% in premarket trading Tuesday.
Meanwhile, recent initial public offering Hinge Health is attempting to break out past a 43.80 entry in an IPO base. Hinge stock jumped more than 3% in premarket trades Tuesday.
Finally, Nvidia is rapidly nearing a 153.13 entry in a cup base that started forming in early January. Nvidia stock gained nearly 1% in early action Tuesday.
The ongoing stock market uptrend provides a bullish setting for raising exposure, but investors still need to watch for volatility. Investors should buy stocks with a 21-day average true range, or ATR, of up to 8%. But they should be wary of being too concentrated in high-octane names.
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. Further, to find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Nvidia And Microsoft Battle For Supremacy In This Arena
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.
And follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
