Stocks Surge in Anticipation of Fed’s Rate Cut Decision; Nvidia and Super Micro Stocks Decline

Stocks Surge in Anticipation of Fed’s Rate Cut Decision; Nvidia and Super Micro Stocks Decline

Major indexes rose slightly Wednesday morning as investors awaited the Federal Reserve’s rate decision and subsequent comments from Fed Chairman Jerome Powell. Nvidia gave up some of Tuesday’s gains on the stock market today while Super Micro Computer continued to decline. And famous investor Cathie Wood sold Block shares.


The Dow Jones Industrial Average and S&P 500 rose slightly from the stock market today. Among the S&P sectors, healthcare and energy lagged, but utilities and industrials gained. The Nasdaq rose slightly following gains on light volume Tuesday.

Volume was lower on the Nasdaq and New York Stock Exchange on Wednesday compared to the same time on Tuesday. The magnitude was mixed, with progressives outpacing decliners on the NYSE while bears led on the Nasdaq, also by a small margin.

Small-cap stocks in the Russell 2000 also rose slightly while the Innovator IBD 50 (FFTY) exchange-traded funds gained 1%. Additionally, the yield on the benchmark 10-year Treasury note fell nearly a basis point to 4.28%.

The Federal Reserve meeting ends Wednesday while rates are expected to remain the same. Traders see a more likely to experience a first rate cut at the June meeting.

At the same time, comments from Fed Chairman Powell could provide further clues. In December, the Fed’s dot plot suggests three rate cuts in 2024, starting in March. But with rates expected to remain the same on WednesdayPowell’s new plan will be closely scrutinized and monitored.

Stock market today: Nvidia, Super Micro Dip

Super microcomputer (SMCI) continued to decline following its share offering. Super Micro offered 2 million shares to 875 for a total of $1.75 billion. The offering is expected to close around March 22. Stocks fell more than 3% Wednesday morning, marking a fifth straight day in the red.

Nvidia (NVDA) continued to climb below the 900 level as shares fell slightly during morning trading. Nvidia managed to turn losses into gains over the previous two sessions, so it remains to be seen whether the artificial intelligence chip leader can hold on.

Arista Networks (Aneta) entered buying territory before retreating on Wednesday morning. The rival of Cisco Systems (CSCO) is trying to break out of a flat base with an entry at 292.66.

Additionally, famous investor Cathie Wood sold shares of Block (S.Q.), a stake in the Ark Next Gen Internet ETF (ARKW) and the Ark Innovation ETF (ARKK). Block shares were down slightly on the stock market today.

Dow Jones Stocks

On the Dow Jones index, Boeing (B.A.) and chemical company Dow (DOW) led the gains while caterpillar (CAT) And Amgen (AMGN) fell.

Disney (SAY) And Merck (MRK) stay in buy areas, according to Increase in the ITN market.

In the meantime, Nike (OF) struggled below his 50-day moving average with results expected Thursday. The key level has been a resistance level since December for the Dow Jones leader.

Stock Market Today: Retailers Report

Earnings moved some retail stocks. Ollie’s Bargain Outlet (OLLI) which increased by 1%, while General mills (GIS) added gains to a three-day rally and broke above the 200-day moving average.

Among Chinese Internet retail games, PDD (PDD) broke above a buy point of 139.06 but fell back below after beat sales and profits views for its fourth quarter.

More results from Lululemon (LULU) And Darden Restaurants (DRI) are expected Thursday.

External gains, Chipotle Mexican Grill (GCM) climbed 7% after the announcement of a 50-to-1 stock split. However, the stock split does not change the valuation or investors’ existing stake in the company’s stock.

Other movers: Texas Roadhouse, Marriott, Alphabet

Texas Truck Stops (TXRH) is in a buy range from a tight four-week entry at 152.46. Marriott (MAR) is also close to a tight entry in three weeks of 252.17.

In health care, Neurocrine Biosciences (NBIX) is in a base with a point of purchase of 143.35.

And in the Growth of the IBD 250 market, Magnificent Seven Google-parent stock Alphabet (GOOGLE) formed a flat base with a buy point of 153.78.

Finally, IBD 50 Stocks Medical shockwave (CRUSH) widened after forming a tight three-week trend with a buy point of 270.96.

Please follow VRamakrishnan on X/Twitter for more stock market news today.


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