Buyers rushed into the stock market in late trading as strength in techs helped the Nasdaq lead the major indexes. Underscoring the technology sector's outperformance, Apple rose past a buy point and climbed to record highs.
The Nasdaq started gaining strength at 1 p.m. ET, when it was up barely 0.1%, and closed 0.8% higher. The composite cleared a trading range that had formed over the past three sessions.
The S&P 500 also started getting a flood of buyers around 1 p.m. and was up 0.3% in the stock market today. The Russell 2000 closed 0.4% lower. The Dow Jones Industrial Average reduced its loss to 0.3%.
But apart from technology, the rest of the stock market didn't participate much in Wednesday's gains.
The Technology Select Sector SPDR rallied 1.9% and Communications Services Select Sector SPDR edged up 0.2%. All other S&P sectors closed lower. Declining stocks outnumbered advancers by about 12-7 on the NYSE and by 9-7 on the Nasdaq.
Volume fell on the NYSE and the Nasdaq, according to early data, as many investors avoided trades before the inflation and Fed news Wednesday.
In late trading, GameStop extended gains and closed more than 22% higher. The stock remained volatile, having slid 12% on Monday. Influential meme investor Keith Gill, aka Roaring Kitty, continues to hold GameStop shares even after its crash on Friday.
Updated 3:12 p.m. ET
In the close race among the Magnificent Seven stocks for the biggest market cap, Apple put more distance between itself and Nvidia, which is in second place.
Apple rose to an all time high Tuesday as it broke out of a base. Its market cap surged to over $3.1 billion. The stock approached Microsoft's market cap of $3.196 billion. Nvidia fell and its market cap remained just below $3 billion.
On Wednesday, two events, consumer price index and the Fed rate decision, will likely move markets. The inflation data and the Fed rate decision have occurred on the same day only 13 times since 2008. Major indexes rose the previous times that combination happened.
The fed funds rate is expected to remain unchanged Wednesday, although Fed Chair Jerome Powell's comments will be in focus.
Updated 1:51 p.m. ET
IBD 50 Underperforms Stock Market Today
The Innovator IBD 50 fund suffered a 0.7% drop. In the IBD 50, Aspen Aerogels was the worst performer. Still, it is today's IBD 50 Stocks to Watch selection.
Among sell signals in the stock market today, AppLovin fell below the 50-day moving average in heavy volume. It is the first break of the line since the developer of mobile app tools broke out of a base in January.
Kura Sushi fell below its 200-day moving average, as the Asian food restaurant chain extended a downtrend. The stock broke its 50-day line last month.
Updated 12:21 p.m. ET
AeroVironment rose above a buy point of 206.78 from a three-weeks-tight pattern. Shares jumped 2.5% in active trading.
Shipping stocks fell broadly. Star Bulk Carriers, Tsakos Energy Navigation, Danaos, Matson, and Navios Maritime Partners fell amid a possible cease fire between Israel and Hamas, which could result in lower freight rates.
Updated 10:36 a.m. ET
The yield on the benchmark 10-year Treasury note fell four basis points to 4.43%.
When the consumer price index is announced Wednesday morning, economists expect inflation to rise 0.1% month on month and by 3.4% annually. The Federal Reserve's policy meeting and rate decision are also due on Wednesday. Traders almost unanimously expect rates to stay unchanged, according to the CME FedWatch Tool.
Apple Leads Dow Jones Stocks
Apple topped the 199.62 buy point of a large cup base. The stock is at a new all time high, going back to data from 1980, according to Dow Jones Market Data. Volume is running about three times more than usual. The stock market had a lukewarm reaction to the iPhone maker's new artificial intelligence features at the Worldwide Developers Conference Tuesday, when shares closed 1.9% lower. But buyers came out in droves today.
D.A. Davidson analyst Gil Luria upgraded Apple to a buy rating from neutral and raised his price target to 230, from 200. Luria said that since the features will be available only on the iPhone 15 Pro and Pro Max, an upgrade to the smartphone is a likely logical outcome.
Melius Research analyst Ben Reitzes sees 20% revenue growth for two years as the stock gets into a "supercycle" growth mode. Elsewhere, analysts at Raymond James said that earnings could increase by 20 cents per share for upgrades to every 1% of installed iPhones.
Apple was the biggest gainer in the Dow.
But finance stocks fared poorly. JPMorgan Chase, American Express and Goldman Sachs fell.
Apple Drives Market To New High; Oracle Jumps Late As Fed, CPI Inflation Loom
Stock Market Today
General Motors rose over 1% on plans to buy back $6 billion of shares. The company already bought back $10 billion in November. The automaker remains in the buy zone from a breakout Monday at 46.16.
In health care, Eli Lilly fell slightly even after a panel of independent advisors at the FDA supported its experimental drug to treat Alzheimer's.
Oracle is in a cup base with a buy point of 132.77 ahead of its earnings report after the market close.
Casey's General Stores is in a buy zone from a buy point of 324.40, according to IBD MarketSurge. The retailer reports fiscal fourth-quarter results after the market close. Shares are testing support at the 50-day moving average.
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