The major indexes rose on Wednesday in response to indications from Federal Reserve Chairman Jerome Powell that interest rate cuts are likely this year. Nvidia and Super Micro Computer surged to record highs on the stock market as well.
The Dow Jones Industrial Average saw a 0.4% increase in the morning, while the S&P 500 climbed 0.6% and the Nasdaq composite gained 0.7%. U.S. exchange-traded funds such as the Nasdaq 100 tracker Invesco QQQ Trust ETF and the SPDR S&P 500 ETF also rose.
After Powell’s remarks, the 10-year Treasury yield fell to 4.1% and oil prices increased by 1.5%. Nvidia’s stock went up by 2.7% and Super Micro’s stock jumped by 4.1%, reaching record highs. Super Micro received a buy rating from Argus Research with a 24% increase in price target.
Powell’s testimony to the House Financial Services Committee will be the main focus of Wednesday’s trading activities. He mentioned that rate cuts are likely this year based on the evolving economy, anticipated inflation risks, and data analysis. The market will also be watching for ADP’s employment report and the Job Openings and Labor Turnover Survey.
Various stocks such as Abercrombie & Fitch, CrowdStrike, Foot Locker, Nordstrom, and Ross Stores experienced movements in response to key earnings reports. The Dow Jones Industrial Average and S&P 500 declined on Tuesday, while the Nasdaq composite sold off. It’s advisable to read The Big Picture column in order to make informed decisions during the ongoing stock market rally.
Key stocks to watch include Duolingo, Fifth Third Bancorp, Fortinet, and Weatherford, along with Dow Jones components Disney, IBM, and Procter & Gamble. Join IBD Live for expert analysis on leading stocks during the current market rally. Tesla, Apple, and Microsoft are also among the stocks garnering attention as investors navigate the market conditions.
