The Dow Jones Industrial Average held gains late Wednesday while small-cap stocks led the market. The Nasdaq composite also closed higher as stocks recovered heavy losses from Tuesday.
Geopolitical tensions amid Russia's attack on Ukraine continue to sway markets, but stocks were boosted on Wednesday by testimony from Fed Chairman Jerome Powell.
On Wednesday, indexes caught some relief from Tuesday's selling after Powell indicated that he supports a quarter-point interest-rate increase this month. In testimony released before his 10 a.m. ET hearing in Congress, Powell said a rate increase at the March 15-16 Fed meeting is "appropriate." However, Powell also added that the economic impacts of Russia's invasion of Ukraine make the rate outlook murky.
In today's market, most major indexes were up close to 2% in late-afternoon trading. The indexes still remain below key moving averages, but are well off their lows from last week and are approaching key areas of resistance.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33889.96 | +595.01 | +1.79 |
| S&P 500 | (0S&P5) | 4386.47 | +80.21 | +1.86 |
| Nasdaq | (0NDQC ) | 13752.02 | +219.56 | +1.62 |
| Russell 2000 | 204.33 | +4.84 | +2.43 | |
| IBD 50 | 38.25 | +0.98 | +2.63 | |
Last Update: 4:10 PM ET 3/2/2022 |
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At the close, the Dow Jones industrials were up 1.8% but still remain negative for the week. The Nasdaq was up 1.6% while the S&P 5oo rose 1.9%. Both indexes have turned positive for the week. The Russell 2000 traded 2.4% higher.
Data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Tuesday. Meanwhile, indexes have been selling off in heavier volume in recent sessions, which indicates institutional selling rather than institutional accumulation.
The yield on the 10-year Treasury note rebounded to 1.86% Wednesday, up from 1.72% on Tuesday. Meanwhile, the price of U.S. crude oil continued to skyrocket and moved above $111 a barrel, an 11-year high.
IBD 50 Stocks On The Rise
The Innovator IBD 50 ETF gained 2.6%, outpacing the major indexes, and reclaimed support at the 21-day exponential moving average. Gains in shipping stock Global Ship Lease and chip equipment maker Axcelis Technologies, which rose over 4% and 3% respectively, boosted the index.
Axcelis is nearing a new cup-with-handle buy point of 75.10 and found support at its conjoined 50-day and 21-day lines on Wednesday. Meanwhile, IBD 50 stock Builders FirstSource also outperformed, rising over 6% as it reclaimed its 50-day line for the first time since early January. A move above the line Tuesday faded. Shares are approaching an 86.58 buy point after the company reported record fourth-quarter earnings late Tuesday.
Outside Dow Jones: Stocks Making Moves
As pointed out in Tuesday's The Big Picture column, "With more stocks still falling than rising, to be a successful stock picker in the stock market today likely means you're laser-focused on the handful of sectors that are actually rising amid the broad decline. Finance was a winner in 2021; no longer. Today, oil and gas, agriculture, metals, shipping and chemicals are essentially the only bullish pools for fishing."
A handful of stocks broke out on Wednesday, including Heico, United States Steel, Oneok and Enterprise Products Partners.
United States Steel broke out from a 28.46 double-bottom buy point and remained inside the buy zone in afternoon trading. The stock has been rising in heavy volume for six straight weeks after U.S. Steel reported strong earnings back in January. A 26.27 entry was also viable. The steel industry group current ranks No. 24 out of IBD's 197 industry groups, a bullish sign.
Meanwhile, aerospace and defense stock Heico, which manufactures jet engine and aircraft replacement parts, broke out from a 152.59 flat-base entry. The stock's RS line also hit new highs alongside the breakout, a bullish indicator. But the stock dipped below the entry.
Elsewhere, two oil and gas stocks jumped past buy points, Oneok and Enterprise Products Partners. Oneok rose past a 66.88 buy point in heavy volume, while Enterprise Products rose past resistance around 25.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
