Selling picked up on the stock market late Wednesday as major indexes reversed course and wiped out much of their gains the last two days of trading. Nvidia gave back the day's winnings while its technology partner Super Micro Computer skidded on the stock market today.
All three major indexes continued to weaken after wiping out earlier gains. After climbing 1% on Tuesday, the Nasdaq composite ended Wednesday down 1.1% — and ultimately lower than where it finished during Monday's massive sell-off. The tech-heavy index remains solidly below its 50-day moving average and is approaching its 200-day line.
The S&P 500 managed to cling to some of Tuesday's 1% gain, but still ended Wednesday trading down 0.7%. The benchmark index also sits under its 50-day line.
Also, the Dow Jones Industrial Average retreated 0.6%. The blue-chip index met resistance at its 50-day moving average after bumping up to it for a second day Wednesday. Meanwhile, the small-cap Russell 2000 reversed and ended the day 1.2% lower after a failed comeback attempt.
Volume on the stock market today was higher on the Nasdaq and lower on the New York Stock Exchange vs. the same time on Tuesday.
In the bond market, the 10-year Treasury yield added seven basis points to 3.96% Wednesday. U.S. crude oil prices jumped to $75.40 a barrel.
3:13 p.m. ET
Stock Market Today: Nvidia In Trouble Again
Nvidia reversed lower 4.3%. This follows a 3.7% rebound Tuesday after three days of selling. The stock remains below its 50-day line.
Super Micro Computer, an Nvidia partner, plummeted more than 18% in heavy volume after the company missed fiscal fourth-quarter adjusted earnings and sales estimates. It also gave a fiscal first-quarter profit outlook that was below analyst projections. The stock fell further below its 200-day moving average on the stock market today. The board recently authorized a 10-for-1 stock split.
Exelixis leapt more than 12% after the cancer treatment developer reported better-than-expected second-quarter adjusted earnings and revenue. Management also raised its full-year revenue guidance. Shares broke out of a long irregular base with a 24.34 buy point. The buy zone goes up to 25.56.
1:57 p.m. ET
Palantir, Two Other IBD 50 Stocks Jump
Markets initially got a lift on the stock market today with the help of comments from Bank of Japan Deputy Gov. Shinichi Uchida, who said the Bank of Japan won't raise rates further when markets are unstable. That sent the yen lower vs. the dollar. A rising yen following last week's BoJ rate hike helped trigger the recent global sell-off.
The major indexes have a long journey to get back to pre-August levels. Tuesday marked Day One of a stock market rally attempt but Wednesday's afternoon reversal looks to make it void.
IBD 50 stock Palantir Technologies popped for a second straight day following the company's higher-than-expected second-quarter results late Monday. The stock recouped early-August losses and jumped back into a buy zone of a cuplike base with a 27.50 buy point, but the stock has weakened from morning highs. Shares were up 2.3% in afternoon trades.
Clear Secure rose 2.8% on top of Tuesday's massive 24.2% surge. The explosive move came after the identity verification provider beat second-quarter earnings and sales estimates and gave third-quarter revenue guidance above views.
Globus Medical powered up 2.5% in heavy volume after the medical equipment company topped second-quarter adjusted profit and sales estimates late Tuesday. Shares are rising from support at the 10-week moving average.
12:13 p.m. ET
Among those getting a lift from the Bank of Japan news was exchange-traded fund iShares MSCI Japan as it rocketed 3.6% higher in heavy trading. The stock is on pace for its largest increase since Nov. 10, 2022, when it rose 5.59%, according to Dow Jones Market Data.
Cybersecurity Stock Soars
Fortinet gapped up around 25% in huge volume on the stock market today after the cybersecurity provider beat second-quarter adjusted profit and revenue forecasts. The stock retook its 50- and 200-day lines and Wednesday's is showing its largest increase on record.
Halozyme Therapeutics rallied 7% in heavy action after the biotech firm topped second-quarter adjusted earnings and revenue projections. The stock broke a five straight day losing streak and reclaimed its 10-week moving average on the stock market today. Shares topped a 20% profit zone of a cup-with-handle base with a 42.64 buy point.
But Dow Jones component Amgen sank 4.4%. The company reported second-quarter sales that came in higher than analysts expected but profits fell short of expectations. The biotech tested its 50-day line but was below it in recent trades. The stock was the biggest loser on the Dow.
10:44 a.m. ET
Nvidia Partner Tanks
Shopify soared around 24% on the stock market today after the e-commerce firm topped second-quarter profit and revenue estimates. Shopify said it expects "revenue to grow at a low- to mid-20s percentage rate on a year-over-year basis."
Axon Enterprise jumped more than 18% in huge volume after the company handily beat second-quarter adjusted earnings and sales estimates. The Taser and law enforcement body camera company raised its full-year 2024 revenue outlook. The stock broke out of an undefined base and reached the 329.87 buy point.
Shares are in the 5% buy zone up to 346.36. The stock and its relative strength line reached 52-week highs on the stock market today. The stock is on track for its largest increase since June 1, 2020, when it rose 18.15%, according to Dow Jones Market Data.
Rally Attempt Suffers Reversal; Nvidia, Tesla Are Key Losers
Stock Market Today: Airbnb Plunges
Airbnb plummeted more than 14% in heavy volume after the company missed second-quarter adjusted earnings estimates but topped sales projections. The vacation rental booking company also gave third-quarter revenue projections below analyst views.
Wednesday's jump erased Tuesday's 4.1% pop before the earnings report came out after the market close. Shares are deep below the 200-day line and hit a 52-week low on the stock market today.
Lyft plunged nearly 14% in huge volume following the company's second-quarter earnings and sales projections that both came in better than expected. But it had lower gross bookings than analysts had forecast. The ride-sharing company also gave a third-quarter bookings outlook that disappointed. The stock has lost 39% so far this year.
Novo Nordisk sank around 5% after the weight-loss drugmaker missed second-quarter earnings and sales expectations.
Magnificent Seven stocks Apple, Amazon.com and Alphabet all gained around 2% on the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
