The major indexes rallied Wednesday after Donald Trump's presidential win Tuesday night, with the Dow Jones Industrial Average racking up the largest gain. Nvidia, Trump Media & Technology and Tesla were big winners on the stock market today. Financial stocks led the Dow Jones and S&P 500.
The Dow Jones Industrial Average climbed more than 3.5%, or 1,508 points, to close at a record high. The Nasdaq also ended the day at a new high water mark after gaining nearly 3%. The S&P 500 increased 2.5% and also closed at an all-time high. But the small-cap Russell 2000 crushed the major indexes with its 5.8% lift.
The iShares Russell 2000 ETF got a 5.8% boost and broke out of a flat base with a 228.63 buy point. Shares are in a buy zone up to 240.06.
Volume was higher on the New York Stock Exchange and the Nasdaq vs. the same time Tuesday. Advancing stocks led decliners by nearly 5-3 on the NYSE and by 9-5 on the Nasdaq.
The 10-year Treasury yield rose a hefty 15 basis points to around 4.44%. Crude oil held at $71.97 a barrel.
3:23 p.m. ET
Stock Market Today: Nvidia Back On Top, Credit Cards Lead
IBD 50, Leaderboard and SwingTrader name Nvidia advanced 4.5% and jumped back into a buy zone that goes up to 147.80 from a 140.76 buy point. Shares reached a record high on Wednesday.
The stock reclaimed the title of the most valuable U.S. company Tuesday. It overtook Dow Jones stock Apple, which inched up 0.1% on the stock market today.
Credit card and bank stocks topped the S&P 500, with Discover Financial Services and Synchrony Financial both surging between 18% and 19%.
Financial services provider KeyCorp advanced 14.6% in heavy volume and reached a 52-week high.
Capital One Financial also jumped more than 14% in heavy trading and reached the 20% profit zone from a double-bottom 153.35 buy point. Shares hit an all-time high on the stock market today.
Outside of financials, Trimble spiked more than 17% and broke out of a cup-with-handle base with a 63.33 buy point. Shares are extended as they hit a 52-week high. The relative strength line also reached a 52-week high, as seen by the blue dot on its MarketSurge chart. The connectivity and data analytics company topped third-quarter adjusted earnings and revenue estimates.
Tesla And Trump Stocks Rally
Trump Media & Technology trimmed opening gains to around 3.9% in huge volume. In addition, the Truth Social parent company reported a third-quarter loss of 10 cents per diluted share, narrowing from a loss of 30 cents a year ago. Net sales dropped to $1 million from $1.1 million.
Trump Media stock retreated back to its 200-day moving average, where it seeks support.
Tesla bolted 14.9% and passed the 264.86 buy point of a cup-with-handle base and another entry at 273.54. The jump ends a six-day losing streak that had triggered the 7% sell rule from a 264.86 cup-with-handle entry Monday. Shares reached a 52-week high on the stock market today. The electric vehicle stock joined the IBD Leaderboard Leaders Watchlist Wednesday.
Tesla CEO Elon Musk may have a role in the new Trump administration.
1:49 p.m. ET
Solar, Clean-Energy Stocks Sink
The Federal Reserve's next policy meeting started today, with a quarter-point rate cut expected. The Federal Open Market Committee announcement is due Thursday at 2 p.m. ET with Fed chief Jerome Powell's comments at 2:30 p.m.
Solar and clean-energy stocks sank after Trump's election win and Republican gains in the U.S. Congress.
First Solar dropped more than 10% and fell further below its 50-day line and undercut its 200-day line. The solar panel maker is on track for its largest drop since April 30, 2021, when it fell 12.3%, according to Dow Jones Market Data. IBD's solar energy industry group fell nearly 13%.
Enphase Energy skidded around 17% in huge volume and sank to a 52-week low on the stock market today. NextEra Energy fell nearly 5% and dug deeper below its 50-day line, but found support at its 200-day line.
But alternative-energy equipment and services provider GE Vernova, adding another 6% to Tuesday's 6.9% lift. Shares hit a record high. Solar and clean-energy stocks sank on news that former President Donald Trump won the presidential election.
Block rose 7.6% and broke out of a long cup-with-handle base with a 75 buy point. The point-of-sale software company is in a buy zone up to 78.75. Block reports its third-quarter results Thursday after the market close.
12:30 p.m. ET
Bank Stocks Lead The Dow
Financials were the strongest sector Wednesday, followed by energy. Financial and bank stocks rallied on the hopes of less financial regulation under Trump's leadership.
The SPDR Financial Select Sector ETF gained 5.6% as it jumped from support at its 10-week moving average. It's extended from a flat-base 45.88 buy point. And the Energy Select Sector SPDR Fund rose 3.4%.
Fulton Financial leaped 14.4% and broke out past a 20.33 buy point. While the base was a wide and loose, the breakout was ideal, with heavy volume and the RS line near highs as well. Shares are in the buy zone up to 21.35, according to MarketSurge chart analysis.
JPMorgan Chase and Goldman Sachs topped the Dow Jones index. JPMorgan notched a 9.8% gain while Goldman climbed 12.8%.
IBD 50 name Lantheus Holdings plummeted more than 20% in giant volume. The drop came despite the medical imaging products company beating third-quarter estimates and tightening up its 2024 revenue and profit guidance. Shares fell below the cup-with-handle base and knifed through the 50-day moving average, triggering a sell signal.
Coupang tumbled around 11.6% in huge volume after reaching a 52-week high Tuesday. The stock sank below its 50-day line and also flashed a sell signal. The drop came even after the Korean online retail platform operator topped Q3 adjusted earnings and sales estimates.
10:42 a.m. ET
Stocks Rally On Election Results
The U.S. election results ignited the stock market today as investors celebrated the return of former President Donald Trump to the White House. In addition, Republicans took control of the Senate and may have the advantage in the House of Representatives.
The final October U.S. Services Purchasing Managers' Index (PMI) fell to 55 vs. the 55.3 forecast and lower than the September 55.2 reading. And the composite index rose to 54.1 vs. the expected 54.3 and higher than 54 in September.
The Mortgage Bankers Association Composite Index dropped 10.8% for the week ended Nov. 1, while the Purchase Index sank 5.1%. The biggest drop came in the Refinance Index, with a 18.5% decline.
Trump Win Spurs Big Market Gains; Here's What To Do
Stock Market Today: Bitcoin Stocks Rumble
Bitcoin exchange operator Coinbase Global shot up more than 18% as bitcoin traded near Tuesday's record high of $75,000. The stock reclaimed its 200-day line on Wednesday.
Super Micro Computer continued its free fall, losing another 23.8%. The data center hardware supplier cut its sales targets for the September and December quarters. In addition, the stock is in jeopardy of being delisted from the Nasdaq exchange.
Palantir Technology added another 5.5% on top of Monday's nearly 23.5% post-earnings jump. Shares reached a record high on the stock market today.
Howmet Aerospace powered up 8.7% following the company's mixed third-quarter earnings report. The aerospace products maker topped adjusted profit estimates but fell short on revenue. It also raised its full-year adjusted earnings outlook while trimming its 2024 revenue guidance. Shares reached an all-time high on the stock market today. Howmet was Tuesday's IBD Stock of the Day.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
