Major indexes soared Wednesday after the Federal Reserve held rates steady and indicated three interest rate cuts still are on tap for this year. Meanwhile, Nvidia reversed higher for a third straight session on the stock market today while famed investor Cathie Wood sold shares of Block.
The Fed concluded its two-day meeting and policymakers still expect three quarter-point cuts in interest rates this year despite a surging stock market and a recent hike in inflation.
Chairman Jerome Powell said after the meeting that if the Federal Open Market Committee's projections pan out, and inflation takes a "bumpy road" toward easing, a dial back on rates would be warranted. The dates for paring back would depend on the monthly inflation data, Powell said.
"We don't know if this is a bump in the road or something more," the chairman said in a post-meeting news conference.
After hugging break-even territory much of the day, the Dow Jones Industrial Average surged 401 points and finished 1% higher on Wednesday. Meanwhile, the S&P 500 climbed 0.9% on the stock market today. Among S&P sectors, health care and energy lagged but others gained. The Nasdaq outpaced the other major indexes by gaining 1.3%.
On Wednesday, volume was higher on the New York Stock Exchange and on the Nasdaq compared with the same time on Tuesday. Breadth improved, with advancers edging past decliners on both exchanges by a small margin.
Small cap stocks on the Russell 2000 outperformed the major indexes with a 1.8% gain while the Innovator IBD 50 exchange traded fund jumped 2.8%. Also, the yield on the benchmark 10-year Treasury note fell more than 2 basis points to 4.27%.
Stock Market Today: Nvidia, Super Micro Dip
Super Micro Computer continued to tumble in the wake of plans to issue additional stock. Super Micro is offering 2 million shares at 875 for a total of $1.75 billion, with the deal expected to close Friday. Shares fell 1.6% Wednesday, marking a fifth-straight day in the red.
Nvidia rose 1.1% to clear the 900 level once again. It was the third straight day that Nvidia managed to turn losses into gains.
Arista Networks also rose Wednesday. The rival of Cisco Systems broke out from a flat base with an entry at 292.66. The relative strength line is at a new high.
Also, fund manager Cathie Wood sold shares of Block, a holding in both her Ark Next Gen Internet ETF and Ark Innovation ETF. Shares of Block reversed course and climbed 2.7% in recent action on the stock market today.
Dow Jones Stocks
On the Dow Jones index, aviation giant Boeing led gainers, up nearly 4%.
Disney and Merck each added more than 1% and remain in buy zones, according to IBD MarketSurge.
Meanwhile, Nike struggled below its 50-day moving average with earnings due on Thursday. That key benchmark has been a level of resistance since December for the Dow Jones leader.
Stock Market Today: Retailers Report
Earnings moved some retail stocks. Ollie's Bargain Outlet seesawed and gained 1.3%, while General Mills added 1% to a three-day rally and cleared the 200-day moving average.
Among Chinese internet retail plays, PDD soared past a buy point of 139.06 but pulled back below it after beating sales and earnings views for its fourth quarter. PDD climbed 3.5% at the close.
More results from Lululemon and Darden Restaurants are due Thursday.
Outside earnings, Chipotle Mexican Grill jumped 3.5% after news of a 50-for-1 stock split. The stock split does not change the valuation or investors' existing stake in the company's shares.
Other Movers: Texas Roadhouse, Marriott, Alphabet
Texas Roadhouse is in buy range from a four-weeks-tight entry at 152.46. Marriott is also near a three-weeks-tight entry of 252.17.
In health care, Neurocrine Biosciences is in a flat base with a buy point of 143.35.
And in the IBD MarketSurge Growth 250, Magnificent Seven stock Google-parent Alphabet has formed a flat base with a buy point of 153.78.
IBD 50 stock Shockwave Medical gapped up after forming a three-weeks-tight pattern with a buy point of 270.96.
Finally, AI-chip maker Astera Labs soared nearly 70% in its debut on the stock market today.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
