The Nasdaq and S&P both traded higher in today's stock market after the Fed announced it will halt asset purchases in March in time for an expected rate hike.
Stock Market Today
At around 2:30 p.m. ET, the Dow Jones Industrial Average traded lower o.1%. The Nasdaq composite rose 2.5% and the S&P 500 advanced 0.4%. Meanwhile, the Russell 2000 small-cap index traded up 1.2%. Early data showed volume was running slightly higher on the Nasdaq and lower on the NYSE vs. the same time on Tuesday.
The growth-focused Innovator IBD 50 ETF also moved higher and rose 2.7%. Shares remain well below key moving averages.
The Federal Reserve delivered a highly anticipated policy announcement at 2 p.m. ET Wednesday. Fed policymakers plan to hold interest rates at near zero but reiterated their commitment to reversing the easy money policies of the pandemic era amid rapidly-rising inflation.
"With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate," the Federal Open Market Committee said in a statement.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34565.51 | +267.78 | +0.78 |
| S&P 500 | (0S&P5) | 4421.12 | +64.67 | +1.48 |
| Nasdaq | (0NDQC ) | 13860.24 | +320.94 | +2.37 |
| Russell 2000 | 201.66 | +2.82 | +1.42 | |
| IBD 50 | 38.29 | +1.02 | +2.74 | |
Last Update: 2:36 PM ET 1/26/2022 |
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All S&P 500 sectors traded higher. Technology, consumer discretionary and energy stocks led the upside, rising over 1% each. Meanwhile, consumer staples were around break-even.
The 10-year Treasury yield ticked up to 1.79% Wednesday afternoon. Oil prices moved higher, with West Texas Intermediate up over 2% to above $87 a barrel.
This moved many energy stocks higher, including new breakouts from the MarketSmith Growth 250 index. PDC Energy, an oil and gas exploration firm, broke out from a recent 59.10 buy point off a consolidation. Shares rose over 5% in strong volume and remain inside the buy zone. The stock's Relative Strength line also ticked higher, a bullish sign. However, this is a stage four base, which has a lower chance of working than a breakout with an earlier-stage base.
Elsewhere, Enterprise Products Partners, a natural gas and crude oil pipeline company and MarketSmith Growth 250 stock, neared a breakout from a double-bottom base with a 24.86 buy point. The stock's RS line has risen tremendously in recent weeks. The stock remains just pennies below the proper entry.
Dow Jones Today
The majority of Dow Jones stocks traded higher, while Microsoft led the upside, rising close to 5%. Shares jumped after Microsoft beat Wall Street's targets late Tuesday for the December quarter and guided higher for the March quarter.
Microsoft is now back above its long-term 200-day moving average.
Meanwhile, fellow Dow tech leader Apple rose 1.9% as shares narrowly avoided triggering a round-trip sell signal from a recent 153.26 buy point off a cup-with-handle base. Shares are now back in the buy range, according to IBD MarketSmith chart analysis.
On the downside, Boeing and Verizon led with losses of over 3% each. Boeing reported a huge loss early Wednesday, taking another big charge, while revenue fell short, even as cash flow turned positive. The Dow Jones aerospace giant gave no financial guidance for 2022, but is ramping up 737 Max production.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
