Stocks closed mixed Thursday, as the Dow Jones Industrial Average was the only major index to end with a gain. The Nasdaq took the brunt of the Big Tech sell-off. Adding to the sea of red was Nvidia as it reversed sharply lower from a new high on the stock market today. And shares of former President Trump's media firm kept tumbling.
The Dow rose 0.8% and held support at its 50-day moving average. The S&P 500 trimmed losses to 0.3% after touching the 5,500 level for the first time. The Nasdaq crumbled and fell 0.8%. That index weakened as the technology sector suddenly slipped and Nvidia sank more than 2%. Both the S&P and Nasdaq closed at record highs Tuesday.
The small-cap Russell 2000 ended down 0.5%. It remains under its 50-day moving average. The 10-year Treasury yield added 4 basis points to 4.25% after economic data was released.
Volume rose on the Nasdaq and the New York Stock Exchange vs. the same time on Tuesday, in preliminary numbers. U.S. financial markets were closed Wednesday in observance of the Juneteenth holiday.
The Innovator IBD 50 exchange traded fund deteriorated and sank 2.6%. Shares fell from the 5% buy zone of a cup base with a 28.35 buy point, and were hovering just below the entry point in recent trades.
Stock Market Today: Trump Stock Losses Mount
Trump Media & Technology Group tumbled 14.6% in heavy volume, falling in 12 out of the last 14 trading sessions. The media stock sank further below its 50-day line and plunged below its 200-day moving average. Shares have lost roughly 46% so far this month.
Jabil plummeted 11.4% in heavy action and knifed through its 50-day line triggering a sell signal. The electronics design company beat fiscal third-quarter profit and sales estimates and warned of weakness in its automotive, transportation and medical business. Jabil stock was the biggest loser on the S&P 500 today.
Meanwhile, IBD Leaderboard player Nvidia dropped 3.5% after reaching another all-time high on the stock market today. The IBD Big Cap 20 stock closed with a market cap greater than Microsoft for the first time on Tuesday. Nvidia reached $3.335 trillion while Microsoft ended the day with a market cap of $3.317 trillion, and Apple was a close third place at $3.286 trillion.
Nvidia shares are extended from a 97.40 buy point and have climbed around 166% so far this year. Tigress Financial hiked its price target to 170 from 95 and maintained its buy rating on the artificial intelligence and chip stock.
Microsoft retreated marginally and is in a buy zone reaching to 452.36. Apple sank 2.2% and is close to drifting back into a buy zone from a 199.62 buy point.
Updated 3:01 p.m. ET
Health and Restaurant Stocks Sink From Highs
IBD 50 stock Hims & Hers Health, toppled around 10% after hitting a new high Tuesday. The stock climbed from the bottom of a cup base after the telehealth and online prescription provider reported better-than-expected first quarter earnings and sales on May 6.
Shares then catapulted 27.7% in huge volume and broke out, topping the 17.16 buy point on May 20. The jump came after news that its injectable weight-loss drug, GLP-1, will be available through its telehealth platform. The stock has surged a whopping 155% so far this year.
IBD SwingTrader stock Cava Group trimmed larger losses and skidded more than 3%, after reaching a record high on the stock market today. The Mediterranean fast-casual restaurant stock has had a tremendous run since its October low of 29.05.
Shares have more than doubled year to date. Cava stock started trading just over a year ago on June 15, 2023, with an initial offering price of 22 a share.
Updated 1:55 p.m. ET
Chipotle Eases From Stratosphere
Chipotle Mexican Grill tumbled around 6% in heavy volume, after reaching a record high on Tuesday. The restaurant stock is extended from a cup base breakout in November.
The stock rode its 10-week moving average on the way up and tested the line for the last two weeks. It also pulled back to its 21-day exponential moving average on the stock market today. Shares formed a bullish three-weeks-tight pattern with a 3,242.66 entry and remain in the buy zone up to 3,339.94.
Gilead Sciences rocketed more than 9% higher in heavy trading, after positive news on its HIV treatment. The drug stock reclaimed its 50-day line and was the biggest gainer on the S&P 500.
Dow stock Salesforce soared around 4% and led the 30-stock blue chip index. The stock remains below its 50-day and 200-day moving averages after a brutal sell-off following its earnings release on May 29.
Updated 12:11 p.m. ET
Tech ETF Off Highs As Leading Techs Fall
SPDR Technology Select Sector Fund pulled back after rising 12 of the past 13 days. Shares dropped 0.5% after reaching a new high on the stock market today.
The exchange traded fund includes Big Tech names Nvidia, Apple, Microsoft, Qualcomm and Broadcom. All sank except Nvidia in the stock market today. Qualcomm plunged around 4% as investors took some profits after the stock reached a record high.
Singapore-based Flex continued to sell off from its May 30 all-time high. The contract manufacturer gave back more than 10% from the 30.93 buy point of an undefined base and triggered a round-trip sell signal.
Accenture surged in heavy trading even after reporting lower-than-expected adjusted fiscal third-quarter earnings and sales. Instead, investors focused on the technology consulting firm's robust booking numbers.
The stock retook its 50-day line. Shares have lost around 13% so far this year. The stock has a weak 42 IBD Composite Rating and a dismal 18 Relative Strength Rating, according to MarketSurge.
Updated 10:41 a.m. ET
Stock Market Today: Jobless Claims Higher Than Expected
In economic news, weekly initial jobless claims for the week ended June 15 came in at 238,000 vs. the 235,000 economists expected, but below the revised 243,000 from the prior week. The latest total remained near a 10-month high.
The 1.277 million May annual rate of housing starts lagged the 1.373 million forecast and below the revised 1.352 million in April. Meanwhile, May annualized housing permits of 1.386 million fell short of the 1.45 million forecast.
U.S. crude oil prices lifted 0.9% to $82.31 a barrel, extending a June rebound.
S&P 500, Nasdaq Fall As AI Plays Skid; Time To Sell Nvidia?
Stocks On The Move: Super Micro Jumps On Musk Tweet
Super Micro Computer and Dell Technologies jumped on news that Tesla Chief Executive Elon Musk confirmed he is using server infrastructure from the two companies for his startup company, xAI.
"To be precise, Dell is assembling half of the racks that are going into the supercomputer that xAI is building," according to a Musk tweet. Dell stock trimmed larger morning gains to around 2.7%.
Super Micro — the best performer in the S&P 500 today — jumped in heavy volume and briefly topped the 1,000 psychological level. Shares are forming a large cup base with a 1,229 buy point, but are already breaking out above a trend line.
Olive Garden parent Darden Restaurants popped on the stock market today after the company beat adjusted fiscal fourth-quarter earnings but missed sales estimates. The stock reclaimed its 200-day line but backed away.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
