The Dow Jones Industrial Average ended higher after an afternoon of topsy-turvy trade Wednesday after the Federal Reserve made what Chairman Jerome Powell called a "risk-management" in interest rates by a quarter point. Meanwhile, Tesla, Uber Technologies and Nvidia stumbled on the stock market today, the latter of which fell below its 50-day moving average.
The Dow gained 0.6% or 260 points after dipping below break-even levels earlier in the session, while the S&P 500 lost 0.1%. The Nasdaq composite erased earlier losses at first but eventually declined 0.3%.
Small caps in the Russell 2000, however, advanced, with the index up 0.2%.
Volume was higher on the New York Stock Exchange and the Nasdaq compared with the same time on Tuesday. Decliners and advancers were nearly evenly matched on the NYSE, but losers slightly outnumbered winners on the Nasdaq exchange. The higher volume created an extra distribution day for the Nasdaq composite.
The yield on the benchmark 10-year Treasury note rose to 4.08%.
Assessing The Rate Cut
Following the Fed's rate cut on Wednesday, Eric Teal, chief investment officer for Comerica Wealth Management, noted that with more stimulus expected, "the yield curve will steepen which bodes well for value-oriented sectors and smaller companies."
Further, Gina Bolvin, president of Bolvin Wealth Management Group, noted that Wednesday's cut was not a pivot but a measured step, warranting a careful eye on upcoming economic data.
3:37 p.m. ET
Powell's 'Risk-Management Cut'
Powell during his afternoon press conference said moderation in economic growth reflected a slow down in consumer spending. Goods inflation remained elevated but the labor market showed signs of softening. Though Powell called it a "challenging situation," he noted there was not widespread support among policymakers to issue a larger rate cut of 50 basis points.
The Fed's dot plot showed nine members anticipated three rate cuts this year while six members saw just one rate cut.
Wednesday's quarter-point easing in the fed funds rate is a "risk-management cut," Powell said.
Though the expectation is that inflation will go up, signs of persistent inflation had lessened since April, he said.
Stocks Hold After Fed Whipsaw; Two Dow Giants Diverge
2:25 p.m. ET
Fed Cuts Rates; Powell Next
As expected, the Fed cut rates for the first time this year, by 25 basis points. Fed Chair Powell will address a press conference later today. Reports say there is talk of two more rate cuts this year.
1:34 p.m. ET
Stock Market Today: IPO Stock Set To Report
Later Wednesday, reports from recent new issue Bullish and Cracker Barrel are due. Bullish popped on its initial trading day and has retreated from its Aug. 13 highs of 118. Shares were up nearly 5% in recent trades.
Cracker Barrel is below its key moving averages. The stock has also triggered a round-trip sell signal and erased a 17% gain after breaking out of a cup-with-handle base at a buy point of 61.44. Shares were down nearly 2% in afternoon action.
1:00 p.m. ET
StubHub Makes Its Debut
StubHub was the latest stock to start trading on the New York Stock Exchange. The retail internet company priced its initial public offering at $23.50 late Tuesday.
Shares opened at 25.35, but were back near 23.50 in recent action. StubHub provides a secondary ticketing marketplace for live events.
11:50 a.m. ET
CrowdStrike Breaches Key Level On Investor Day
Shares of CrowdStrike sank below their 50-day moving average as the cybersecurity company's investor day got underway. Shares lost 1.4% in recent action but remain in a consolidation base of 11 weeks with a buy point of 517.98. The company's sales outlook for the current quarter disappointed, but annual recurring revenue is a key metric to watch.
In health care, Roivant Sciences extended its gains after positive results from a yearlong study of its drug to treat an autoimmune condition that affects the skin and muscles. Shares surged nearly 11% and hit their 20% profit zone from a buy point of 13.05.
Elsewhere, Nvidia fell nearly 3% and dropped below its 50-day moving average. China's Cyberspace Administration banned the country's biggest companies, including Alibaba and ByteDance, from buying Nvidia's artificial intelligence chips, the Financial Times reported.
11:08 a.m. ET
Workday Soars On Activist Investor's Stake
In stocks, Workday jumped more than 8% after activist investor Elliott Investment Management announced that it had taken a stake of more than $2 billion in the software company. Workday also announced that it was acquiring artificial intelligence company Sana on Tuesday.
Shares cleared their 50-day moving average but remained below their 200-day moving average. Workday also has a weak Relative Strength Rating of 14.
Baidu surged nearly 7% after Arete Research Service upgraded the stock to buy from sell, CNBC reported. Analysts cited a positive outlook for its artificial intelligence chip and cloud sales.
Shares are on a five-day winning streak and extended from a buy point of 116.25. They are at levels last seen in October 2023.
10:27 a.m. ET
Housing Data Weak Ahead Of Fed Decision
In economic data, housing starts and building permits fell more than expected in August. Housing starts fell to 1.307 million while building permits for August came in at 1.312 million.
Economists had expected both to come in at 1.37 million. July's numbers were revised to 1.429 million in housing starts and 1.362 million in building permits.
According to Jamie Cox, Managing Partner for Harris Financial Group, the weak housing data strengthens the case for an acceleration of rate cuts this year after an expected cut by 25 basis points from the Fed later in the day.
Stock Market Today: General Mills And FedEx
In stocks, General Mills slid more than 1% after reporting its August-ended quarterly results. Earnings declined from $1.07 per share a year ago to 86 cents per share, but came in above estimates of 81 cents per share. Sales of $4.5 billion also declined 7% and met views.
For the full year, the cereal maker expects earnings to decline by 13% at the midpoint. The stock has been facing resistance at its 50-day moving average since April and remained lower in Wednesday's trading.
Just ahead of its earnings, FedEx moved higher despite a downgrade from Evercore ISI to hold from buy, Barron's reported. Analysts lowered their price target to 243, down from 249.
President Donald Trump's tariffs on small-package shipments from China are seen increasing costs for the shipping company. Shares have been struggling to get past their 50-day moving average and currently sit at that key level. FedEx is due to report Thursday.
9:45 a.m. ET
Stock Market Today: Nasdaq 100 Winners, Losers: Workday, Netflix, Tesla, Palantir
Among the Nasdaq 100 stocks, Workday and Netflix rallied more than 9% and 1%, respectively, making them some of the best performers in morning trading. Both are attempting to regain their 50-day moving averages.
Meanwhile, Tesla and Palantir declined roughly 2% each. Tesla stock threatened to snap a six-day winning streak, as Palantir shares were on pace to make it three straight down days.
9:22 a.m. ET
Lyft Soars On Waymo Partnership; Uber Tumbles
Lyft surged in premarket action Wednesday after the company announced a partnership with Waymo to bring fully autonomous ride-hailing services to Nashville in 2026.
Rival Uber Technologies tumbled more than 4%, threatening to fall squarely below a recent buy point at 97.54.
8:44 a.m. ET
Dow Jones Movers: Amazon, McDonalds And UnitedHealth
Inside the blue chip index, McDonald's was among the top performers, up 0.7%, in morning action. Shares are trying to find support around their 50-day moving average.
On the downside, Amazon.com and UnitedHealth Group dropped 0.3% and 0.8%, respectively. Amazon is close to a 236.53 buy point, while UnitedHealth threatened to fall for a fourth-straight session.
8:05 a.m. ET
Stock Market Today: Nvidia Stock Drops On China Ban Report
Nvidia stock fell more than 1% Wednesday premarket after China's Cyberspace Administration banned the country's biggest companies, including Alibaba and ByteDance, from buying Nvidia's artificial intelligence chips, The Financial Times reported. Previously, Beijing has strongly urged local giants to not purchase Nvidia chips.
Nvidia shares threatened to break below their 50-day moving average line, according to IBD MarketSurge.
StubHub IPO Set To Start Trading
Late Tuesday, StubHub priced its initial public offering at $23.50 per share. The company plans to sell 34 million shares at that price, raising $800 million and valuing the company around $8.6 billion.
StubHub anticipates to begin trading on the New York Stock Exchange Wednesday under the ticker symbol STUB.
Stock Market Today: Fed Decision, Powell Comments On Deck
The Fed's policy meeting ends Wednesday, with an interest rate decision at 2 p.m. ET. The Fed is expected to announce a quarter-point rate cut, but there could be some dissents, with a few officials calling for 50 basis points and even some opposed to any move at all.
The rate-cut outlook will be key with Fed chief Powell's press conference at 2:30 p.m. ET. Traders will be hoping for some clarity as they bet on quarter-point cuts in October and December.
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.
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