The Dow Jones Industrial Average tumbled on inflation worries. AI leader Nvidia (NVDA) moved higher but fellow Magnificent Seven names Tesla (TSLA), Apple (AAPL) and Microsoft (MSFT) struggled. A Warren Buffett stock flashed a sell signal while Trump Media & Technology (DJT) got crushed.
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Meanwhile, a number of stocks dug in near entries amid the negative motion. Icici Bank (IBN) and Axon Enterprise (AXON) managed to hold up. But there have been also quite a few breakdowns.
Stock Market Today: Bears Maul Small Caps
The tech-heavy Nasdaq closed off lows but still fell 0.8% on the stock market today. Walgreens Boots Alliance (WBA) lagged inside the composite since it tumbled 6%.
The benchmark S&P 500 fell 1%. Extra Space Storage (EXR) was amongst the numerous worst performers since it plunged 6.5%. Delta Air Lines (DAL) had initially been an excellent spot on an earnings beat, but didn’t stick the landing since it closed down 2.3%. The Invesco S&P 500 Equal Weight (RSP) exchange traded fund skidded 1.7% amid broader weakness.
S&P 500 sectors mostly ended the day in negative territory. Real estate and utilities, the latter a defensive area, struggled most on the stock market today. Only energy managed to squeeze out a slight gain.
Small caps were spanked by the bears, the Russell 2000 falling 2.7%. The index gapped below its 50-day moving average. Growth stocks dug in though, with the Innovator IBD 50 ETF (FFTY) dipping 0.5%.
Fed Minutes Reveal These Worries
Taking a bit out of stocks Wednesday was the latest consumer price index, which came in hotter than expected. The news stoked inflation fears and put a damper on prospects for rate of interest cuts this summer.
Headline CPI popped 3.5% 12 months over 12 months. This was higher than views for 3.4%. Core CPI, which strips out food and energy prices, spiked 3.8% from a 12 months ago. This was also above analyst expectations.
Also on the economic front, minutes from the Federal Reserve came out Wednesday, but stocks had a muted response. The minutes revealed Fed Chair Jerome Powell and his fellow Federal Open Market Committee members are nervous about cutting rates too soon.
“Participants generally noted their uncertainty with regard to the persistence of high inflation and expressed the view that recent data had not increased their confidence that inflation was moving sustainably all the way in which right down to 2 percent,” the minutes said.
Meanwhile, the 10-year Treasury note soared 18 basis points to 4.55% while the 30-year gained 13 basis points to 4.63%. The five-year yield jumped 23 basis points to 4.6% while the two-year vaulted 22 basis points to 4.97%. Yields were pushed even higher in afternoon trading following a disappointing 10-year auction.
Dow Jones Today: Home Depot, Intel Stocks Lag
The Dow Jones plunged 422 points, though it managed to shut off session lows. This equates to a fall of 1.1%.
Home Depot (HD) lagged probably essentially the most since it tumbled 3%, closely followed by Intel (INTC), which sank 2.9%. The struggling semiconductor stock is trading below the 200-day line.
Banking giant Goldman Sachs (GS) fell 2.4% while Nike (NKE) skidded 2.2%.
There have been only just a number of components in positive territory on the Dow Jones today. Walmart (WMT) fared best, rising 1.4%.
Magnificent Seven: Nvidia Rises Amid Correction
The so-called Magnificent Seven had mixed fortunes inside the stock market today.
Nvidia, which has been fueled by AI enthusiasm, bounced after days of weak motion. It rose nearly 2% since it got support on the 10-week moving average. Morgan Stanley raised its price goal to 1,000 from 795.
Nvidia yesterday closed greater than 10% below the March 25 closing high of 950.02. Nevertheless, the Leaderboard stock stays up greater than 70% up to now in 2024.
Tesla stock suffered most amongst the numerous much-watched group of stocks. The electrical vehicle maker’s shares dived greater than 3%, losing ground on the 50-day line in the strategy. Jefferies lowered its price goal to 165 from 185 but retained its hold rating. TSLA stock is now down greater than 30% up to now in 2024.
Microsoft stock fell around 1%, and is now testing the 21-day exponential moving average. Old rival Apple (AAPL) fell 1.1% as its downtrend continues. Google parent Alphabet (GOOGL) fell fractionally.
Amazon.com (AMZN) inched lower while Meta Platforms (META) reversed out of negative territory to edge higher.
Markets Skid, Price Out Fed Rate Cuts; Nvidia Rebounds
Donald Trump Stock Sinks
It could often be an investing mistake to let one’s heart rule one’s head. And that’s proving to be the case for investors who got in at the best with Trump Media & Technology stock.
The Donald Trump stock was hammered nearly 9% lower Wednesday, though charitable investors may indicate the actual fact volume was below average. Nevertheless, DJT stock is now down a whopping 57% on the stock’s 2024 high, which it reached on March 26.
Individuals who held on after purchasing at its all-time high of 175 — which it reached in October 2021 when it was still Digital World Acquisition — have lost around 80% of their money.
The Truth Social parent might be struggling on a technical basis. Wednesday’s move caused it to lose further ground on the necessary thing 50-day moving average, MarketSurge evaluation shows.
Stock Market Today: Deckers Decked Amid Breakdowns
Ugg and Hoka brands parent Deckers Outdoor (DECK) saw yesterday’s test of the 50-day moving average turn right right into a serious breach since it skidded 6.7% in high volume, MarketSurge evaluation shows. It’s a sell signal.
Deckers stock was hit after Truist downgraded the stock to hold as a consequence of weak demand concerns.
Aerospace play Hexcel (HXL) flashed a sell signal since it tumbled below the 200-day moving average. Shares plummeted 12.4% in massive volume. Chief Executive Nick Stanage is retiring.
Homebuilder stocks were also under pressure as rates of interest surged. The iShares U.S. Home Construction (ITB) exchange traded fund fell below its 50-day line after dipping 4.6%. Volume was above average here.
Warren Buffett Stock Flashes Sell Signal
Even one of the best investors can suffer a painful loss. And legendary stock picker Warren Buffett is also spitting out his Coca-Cola today after one among the many stocks held by his Berkshire Hathaway (BRKB) firm flashed a key sell signal.
Buffett stock Floor & Decor (FND) gapped below its 50-day moving average in above-average volume. The relative strength line might be falling. Its share price closed down 7.1%.
Nevertheless, Buffett may opt to pursue his legendary buy-and-hold strategy as he still holds a solid profit on his average buy price inside the stock.
Outside Dow Jones: These Stocks Dig In Near Entries
Even amid the difficult motion there have been just a number of stocks showing strength near buy points on the stock market today.
India-based Icici Bank slipped back barely below the 26.66 buy point of an early-stage flat base, MarketSurge evaluation shows.
Axon Enterprise is one other one for investors’ watchlists since it climbed 2.3% on the stock market today. Axon continues to form a flat base with a wonderful entry of 325.63. It’s breaking out past a trend line entry around 319. But market risk is higher now. The police equipment maker is up greater than 22% to this point this 12 months.
Please follow Michael Larkin on X, formerly generally referred to as Twitter, at @IBD_MLarkin for more evaluation of growth stocks.
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