The stock market rallied on Tuesday, with the Nasdaq leading the way as the 10-year Treasury yield pulled back from its recent highs. Tesla, despite facing negative news, made a bullish move and continued to show strength. However, the rally attempt still lacked a follow-through day, indicating that stocks are heavily influenced by Treasury yields.
In addition to Tesla, other stocks like Meta Platforms and Google parent Alphabet are also performing well and are currently near buy points. Arista Networks and Synopsys have also shown positive movement and are nearing potential buy points.
On Wednesday, Tesla stock joined IBD Leaderboard and SwingTrader, showcasing its strong performance. Meta Platforms and Arista Networks are already on the Leaderboard, while Synopsys is on the IBD Long-Term Leaders list. All three stocks are also part of the IBD 50. Arista Networks was highlighted as the IBD Stock of the Day on Wednesday.
Looking at the futures market, Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures were relatively unchanged after hours. It’s important to note that overnight action in futures doesn’t always translate to actual trading in the regular stock market session.
The stock market rally attempt remained alive on Wednesday, with the Nasdaq experiencing a strong session. The Dow Jones Industrial Average rose by 0.4%, while the S&P 500 climbed by 0.8%, led by Tesla stock. The Nasdaq composite saw a significant jump of 1.35%. Market breadth was modestly positive, despite abysmal readings on Wednesday.
The 10-year Treasury yield, which had reached 16-year highs recently, climbed nearly 7 basis points to 4.735%. However, it experienced a slight decline due to a weak ADP employment figure. U.S. crude oil prices tumbled by 5.6%, while gasoline futures plunged by 6.9%.
In terms of exchange-traded funds (ETFs), those focused on growth saw positive movement, including the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF. ETFs such as the ARK Innovation ETF and the ARK Genomics ETF were mixed, while the SPDR S&P Metals & Mining ETF declined and the Global X U.S. Infrastructure Development ETF gained.
Tesla stock showed an aggressive buy signal on Wednesday, surpassing the 50-day line in higher volume. Meta stock rebounded above the 50-day line, while Google stock climbed and retook a shelf entry. Arista stock edged up and showed potential for a flat base, and Synopsys stock rebounded from the 50-day in a low-volume inside day.
In conclusion, the stock market rebounded on the surge in the Nasdaq, with Tesla stock highlighting a bullish move. However, the market rally attempt still lacked a follow-through day, and stocks remain sensitive to Treasury yields.
Definitions:
– Dow Jones futures: Contracts that allow investors to speculate on the future performance of the Dow Jones Industrial Average.
– S&P 500 futures: Contracts based on the S&P 500 index, offering investors the ability to trade and speculate on the future value of the index.
– Nasdaq futures: Contracts based on the Nasdaq composite index, allowing investors to trade and speculate on the future value of the index.
– Tesla: A leading electric vehicle company.
– Meta Platforms: Formerly known as Facebook, Meta Platforms is a social media and technology company.
– Google: A multinational technology company specializing in internet-related services and products.
– Stocks in focus: Referring to stocks that are currently receiving significant attention or being closely monitored by investors.
– IBD Leaderboard, SwingTrader, Long-Term Leaders, IBD 50: Various stock lists and investing tools provided by Investor’s Business Daily (IBD) to assist investors in identifying potentially profitable stocks.
Sources:
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