Indexes finished mixed Wednesday as President Donald Trump started looking for a replacement for Federal Reserve Chairman Jerome Powell. The Dow Jones Industrial Average lagged while the S&P 500 was virtually unchanged. But the Nasdaq ticked higher and was just a notch away from a key milestone on the stock market today.
The Dow lost 0.3%, while the S&P 500 managed to hold on to the psychologically-important level of 6,000. Meanwhile, the tech-heavy Nasdaq composite moved up 0.3%. The tech-dominated index is within reach of the 20,000 level.
After a day of outperformance Tuesday, small caps in the Russell 2000 slipped 1%. The yield on the 10-year Treasury note was unchanged at 4.29%. And West Texas Intermediate oil climbed more than 1% to near $65.20 a barrel.
Also, the Innovator IBD 50 exchange traded fund broke a four-day winning streak and fell 1.5%.
Preliminary data showed volume was lower on both the New York Stock Exchange and Nasdaq compared with the same time on Tuesday. Breadth was negative with decliners ahead of advancers by roughly 5-to-2 on the NYSE and slightly less than 2-to-1 on the Nasdaq.
Nvidia Hits All-Time High
Nvidia broke out to an all-time high in late action Wednesday. Shares cleared a consolidation buy point of 153.13 amid a three-day winning streak. The relative strength line is at a new high as well, going by the blue dot on IBD MarketSurge.
Shares ended the day more than 4% higher, making Nvidia the most valuable company in the world with a market cap of $3.77 trillion. It edges out Microsoft, which also hit an all-time high Wednesday with a fractional gain. Microsoft is now worth $3.66 trillion.
Elsewhere, Duolingo extended losses after data showed user growth was slowing down. Shares ended the day 6% lower.
Analyst John Colantuoni at Jefferies noted that daily active users decelerated to 37% in June on an annual basis, down from 40% in May. Shares are on a four-day losing streak and have round-tripped back below a buy point of 441.76.
3:29 p.m. ET
Trump Starts Search For Powell Replacement
Meanwhile, Trump said at the NATO summit in the Netherlands on Wednesday that he has narrowed down possible candidates to serve as the next Fed chair to replace Powell.
The president has been highly critical of Powell and the Fed for their handling of interest rates in recent months. Trump has made repeated calls for rate cuts, but Powell has resisted.
Trump has hurled a number of insults at Powell for failing to act, and added a few more Wednesday, according to reports. CNN quoted Trump accusing Powell of having a "low IQ for what he does." Trump later added: "I think he's a very stupid person, actually."
Though Trump didn't specify them, possible contenders include Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh, and current Fed Governors Michelle Bowman and Christopher Waller. The director of Trump's National Economic Council, Kevin Hassett, is also a possibility.
Originally appointed by Trump in 2017, Powell's current term expires in May. Trump indicated he would wait until the term expires before replacing Powell. A Fed chief can only be forced out by a president "for cause."
Futures: Micron Rises Late After Nvidia Hits High, Tesla Round-Trips Robotaxi Rally
1:47 p.m. ET
Stock Market Today: Big Movers On Dow, S&P
Dow components were mixed with more than half in negative territory. Nvidia, Apple and JPMorgan Chase led. McDonald's, 3M and Travelers fell.
Tech stocks advanced in the benchmark S&P 500 with Advanced Micro Devices and computer maker Super Micro Computer taking the lead, along with Nvidia. Paycom Software fell in sympathy with Paychex, which sold off after rallying into earnings.
Oil Inventories Down, These Stocks Are Up
Economic data Wednesday afternoon came by way of the U.S. Energy Information Administration's weekly report of oil inventories. U.S. commercial crude oil inventories – excluding those in the Strategic Petroleum Reserve – decreased by 5.8 million barrels for the week ended June 20, from the previous week and were 11% below their five year average for this time of the year.
Several oil stocks gained on Wednesday. Targa Resources rebounded from its 50-day moving average. Other gainers in the oil refinery and marketing group included Valero and Marathon Petroleum.
1:11 p.m. ET
BP, Shell Swing Wildly On Merger News
Shares of BP soared before pulling back amid reports that Shell is in early talks to acquire the oil giant.
BP stock jumped more than 10% at one point during trading Wednesday, but pared those gains heavily in recent action. Shares were up nearly 2%.
Shell, meanwhile, plunged more than 4% at one point, but won back some of those losses as the day wore on. Shell stock was off 0.7% in recent action.
11:45 a.m. ET
Treasuries Inch Upward; Oil Prices Bounce
The 10-year Treasury yield edged higher to 4.32% Wednesday morning. Meanwhile, oil prices bounced with West Texas Intermediate futures around $65.30 a barrel.
Among exchange traded funds, the Invesco QQQ Trust rose 0.3%, while the SPDR S&P 500 ETF added 0.1% in recent action. The Innovator IBD 50 ETF slipped 0.8%. Shares have formed a cup base with a buy point of 34.26.
Powell Testifies In Congress
In economic news, Fed Chairman Powell continued his testimony in front of the Senate Banking Committee. Powell said inflation expectations have come down from April and that the bond market was functioning well.
Commenting on the weakness in the U.S. dollar in recent weeks, the Fed chair said that was likely due to unusually challenging circumstances, but noted that the currency appeared to be stabilizing. The Invesco DB U.S. Dollar Index Bullish ETF tried to break a three-day losing streak Wednesday but remained stuck below its 50-day moving average.
Turning to inflation and tariffs, Powell noted that there is no modern precedent for understanding the relation between tariffs and inflation. Powell said that how much of tariffs' upward pressure to prices passes down to the consumer and to inflation is on watch.
Meanwhile, Boston Fed President Susan Collins expects a rate cut later this year, Reuters reported. "Much will depend on whether the 'price shock' from tariffs dissipates quickly," she said.
New Home Sales Decline; Kyndryl Breaks Out
Also, new home sales in May declined to 623,000. They were seen falling to 694,000 from April's 743,000.
Wednesday's action saw Kyndryl Holdings rise more than 2% in the enterprise software group, and break out of a cup-with-handle base with a buy point of 41.57. The relative strength line is rising sharply as the stock heads toward a three-day winning streak.
10:30 a.m. ET
Tesla's EU Sales Decline; Micron Heads Into Earnings
Tesla plunged 5.5% after new car sales in Europe declined for the fifth straight month. Tesla sold 13,863 cars in May in the European Union, the U.K. and the European Free Trade Association combined. New car registrations in the region declined 27.9% annually. Tesla's market share fell to 1.2% from 1.8% in May last year.
Micron slipped more than 1% ahead of its third-quarter results, due after market close. Analysts expect sales of $8.9 billion or a 30% growth from the prior year. Earnings of $1.60 per share would be a 158% increase.
Analysts at Loop Research hiked their price target for Nvidia to 250 from 175 while maintaining their buy rating on the stock. The artificial intelligence chip titan climbed nearly 3%, leading the Dow and nearing its all-time high of 153.13.
9:10 a.m. ET
Stock Market Today: Coinbase, Tesla Rally; Circle Slides
Coinbase Global jumped nearly 5% Wednesday after analyst firm Bernstein hiked its price target to 510 from 310, while maintaining an outperform rating. Shares are already up more than 42% since June 13.
Meanwhile, Tesla moved up 0.7% in early trading, moving closer to a 357 trendline entry. And Circle Internet Group declined 1.5%, threatening to add to Tuesday's 15.5% plunge.
8:08 a.m. ET
Stock Market Today: More Powell Testimony, FedEx Dives
Fed Chair Powell is due to give his semiannual monetary policy report Wednesday before the Senate Committee on Banking, Housing, and Urban Affairs.
Testifying before the House Financial Services Committee Tuesday, Powell reiterated the Federal Reserve's commitment to keeping inflation under control. He added 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.
FedEx stock plunged 5% despite reporting better-than-expected earnings for its fiscal fourth quarter. The company changed its outlook practice, providing only a one-quarter look ahead due to ongoing uncertainty. Further, FedEx predicted a current-quarter profit that was short of estimates.
Elsewhere, key earnings movers included AeroVironment, General Mills and Paychex. Shares of AeroVironment rose 2%, while General Mills stock sold off more than 2%. Paychex shares edged higher early.
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 a fraction in premarket trading Wednesday.
Meanwhile, Tuesday's breakout stock Carnival broke out past a 24.66 handle entry during the session's 6.9% gain following the company's strong earnings results. Carnival stock added 0.5% in premarket trades Wednesday.
Tuesday's IBD Stock Of The Day Uber Technologies jumped 7.5% Tuesday, bullishly rebounding from its 50-day moving average and topping early entries at 88.38 and 87. Uber stock tacked on 0.3% ahead of the opening bell Wednesday.
Stock Market Today: Nvidia Nears New Entry
Finally, new IBD Leaderboard stock Nvidia is rapidly nearing a 153.13 entry in a cup base that started forming in early January. Nvidia stock gained 1% in early action Wednesday.
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
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