Major stock indexes increased after reaching a key support level as traders awaited a speech from Fed Chair Jerome Powell later in the day. Nvidia recovered from early losses after an earthquake in Taiwan impacted its foundry partner, Taiwan Semiconductor, while Tesla continued to decline based on analyst opinions.
The Dow Jones Industrial Average bounced back from initial losses and went up by 0.2% in morning trading. The index is now above the 21-day exponential moving average after dropping below it on Tuesday. The S&P 500 reversed its course and rose by 0.3%, while the Nasdaq composite climbed by 0.4% and extended its lead over the 21-day line. In terms of S&P sectors, industrials and materials saw gains while consumer staples, utilities, consumer discretionary, and technology experienced losses.
The ADP employment report revealed that the economy added 184,000 jobs in March, surpassing the expected 150,000. Additionally, Atlanta Fed President Raphael Bostic suggested that the Fed should wait until the fourth quarter before decreasing rates. Powell is scheduled to speak at the Stanford Business, Government, and Society Forum in California later in the day.
Trading volume was lower on the NYSE but higher on the Nasdaq compared to the same time on Tuesday. Declining stocks outnumbered advancing ones on both exchanges. The Russell 2000 index rebounded by 0.3% after two days of significant selling, while the Innovator IBD 50 ETF rebounded from the 50-day moving average with a 0.5% gain.
The yield on the 10-year Treasury note increased by 1 basis point to 4.38%. Among Dow Jones stocks, Intel dropped by nearly 7% after reporting a $7 billion loss in its foundry operations for 2023. On the other hand, Microsoft received support at its 21-day moving average and is part of the IBD Long Term Leaders list. Salesforce is rebounding from the 50-day moving average, while Caterpillar and Merck were among the top gainers in the index.
Apple rose by 0.9%, but its 50-day moving average fell below the 200-day line. Tesla continued to decline following weak first-quarter deliveries, while Nvidia bounced back from the 21-day line. Dave & Buster’s and Cal-Maine experienced positive earnings movements, while Ally Financial received a downgrade from JPMorgan. ELF Beauty triggered a sell signal in the IBD 50 by falling below the 50-day moving average.
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