The Dow Jones and other major stock indexes pared some of their losses in midday trades Tuesday, as the markets braced for a key inflation report. Meanwhile, Tesla rose as investors weighed major developments at the electric-car maker. And Nvidia fell on the stock market today in spite of analysts’ bullish views on its China sales.
Industry Insights, we’re counting down to 2024 with new investment themes and strategies. Blackrock U.S.’ Jay Jacobs discusses the role big tech incorporating artificial intelligence will play in the markets. We also break down how potential interest rate cuts will influence investors.” data-nosnippet=”true” data-permalink=”https://www.investors.com/ibd-videos/videos/artificial-intelligence-interest-rate-cuts-how-investors-can-win-big-in-2024″ jw-video-key=”vUZ3ScDt” vid-authors=”MEREDITH HEYMAN” vid-cat=”Industry Insights” vid-date=”12/22/2023″ vid-date-tmsp=”1703245977″ vid-dom-id=”8849680-66156fd660c3c” vid-id=”8849680″ vid-image=”https://10xwealthreport.com/wp-content/uploads/2024/04/echo/vUZ3ScDt-640×360.jpg6615713a85023.jpg” vid-name=”From Artificial Intelligence To Interest Rate Cuts, Here’s How Investors Can Win Big In 2024″ vid-repeat=”1″ vid-top=”false” vid-url=”https://content.jwplatform.com/manifests/vUZ3ScDt.m3u8″ vid-width=”50″> X
The Dow Jones Industrial Average, which plunged more than 300 points at one juncture, cut that deficit in half and was down 0.4% in recent action. The S&P 500 fell 0.3% as tech-heavy stocks on the Nasdaq did better with a loss of just 0.2%. The Dow Jones index fell below its 50-day moving average while the S&P 500 and the Nasdaq hugged their 21-day moving averages.
Among the S&P sectors, utilities and real estate led while industrials and financials fell. Technology and consumer discretionary had smaller losses.
Meanwhile, small caps on the Russell 2000 fell 0.2% as it continued to battle with the 21-day moving average amid pronounced volatility in recent sessions. And volume on both the New York Stock Exchange and Nasdaq exchange was higher compared with the same time on Monday. However, breadth offered some relief as advancers led decliners on both exchanges by a small margin.
The Innovator IBD 50 (FFTY) exchange traded fund lagged and fell 2%. The ETF is testing support at the 50-day moving average. Further, the yield on the benchmark 10-year Treasury note fell 4 basis points to 4.38%.
Magnificent Seven: Tesla Up, Nvidia Down
Among Magnificent Seven stocks, Tesla (TSLA) trimmed its gains to 1% on the stock market today. Chief Executive Elon Musk said on X, formerly Twitter, that the company would unveil its robotaxi on Aug. 8. Musk also denied rumors that Tesla would not make a mass market vehicle.
But according to reports, analysts at Deutsche Bank said it is still too early to weigh in on the “thesis-changing” news. Too much uncertainty remains regarding both an autonomous car enabled with artificial intelligence, and what the analysts called a “volume play” through a low-priced vehicle.
Fellow Mag 7 stock Nvidia (NVDA) fell 3% even after a CNBC report that the AI chip leader’s China sales may exceed lowered expectations. Nvidia is a holding in Investors Business Daily’s IBD Leaderboard model portfolio, as well as the IBD 50 growth stocks list. New challenges from Google-parent Alphabet‘s (GOOGL) latest AI chip may be pressuring the stock.
Stock Market Today: Inflation Report Due
The Labor Department is due to release its Consumer Price Index report for March on Wednesday.
On an annual basis, inflation is seen rising to 3.5% from 3.2% in February, provided that the monthly increase tapers to 0.3% from February’s 0.4%. Core inflation is expected to fall to 3.7% from 3.8% annually, according to Econoday.
Elsewhere, IBD MarketSurge Growth 250 showed a possible sector rotation underway. The top gainers were insurance stock Root (ROOT) and retail stock American Eagle Outfitters (AEO). Eldorado Gold (EGO) also rose.
In the IBD 50, top gainers were MakeMyTrip (MMYT) and Permian Resources (PR).
Dow Jones Stocks On Stock Market Today
Among stocks in the Dow Jones index. Cisco Systems (CSCO) rose but Salesforce (CRM) and Microsoft (MSFT) reversed lower. Chipmaker Intel (INTC) also fell.
Finance stocks on the Dow took a hit ahead of big bank earnings. JPMorgan Chase (JPM), American Express (AXP) and Visa (V) all fell.
Outside the Dow, Alphabet’s Google launched its cloud-computing event on Tuesday. The company announced Monday its Google Cloud unit is expanding its partnership with Palo Alto Networks (PANW). Palo Alto has committed to a “ten-figure” multiyear deal in which it makes Google Cloud its AI and infrastructure provider of choice.
Palo Alto Networks rebounded from the 200-day line and is in a base, though a buy point of 380.84 remains distant, according to IBD MarketSurge. Google stock was up fractionally in a buy zone after breaking out at 153.78.
Meanwhile, Icici Bank (IBN) is trying to break out of a flat base on a weekly chart with a buy point at 26.66. American Depositary Receipts for the India-based financial stock were up nearly 3% in recent action.
Monday’s Stock Of The Day United Rentals (URI) is building a flat base with a buy point of 732.37. Alamos Gold (AGI) rose on the stock market today after analysts at Bank of America upgraded the stock to a buy from a neutral rating with a price target of 27.25, up from 21.75.
First-quarter earnings start later this week with Wells Fargo (WFC), JPMorgan Chase (JPM) and Citigroup (C) reporting Friday.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
YOU MAY ALSO LIKE:
IBD Live: Learn And Analyze Growth Stocks With The Pros
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSurge: Research, Charts, Data And Coaching All In One Place
