Major indexes in the stock market today dropped sharply at the open but quickly trimmed losses during the first hour of trading. But Facebook owner Meta Platforms (META) got hit hard. Nvidia (NVDA), another member of the Magnificent Seven, also got rocked after the opening but contained the selling better than Meta and managed a reversal in early trading.
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Nvidia swung from a loss of almost 4% in the first 15 minutes of trading, but chipped that down to turn 1% higher at around 10:45 a.m. ET. The AI chip designer and leader in graphics processing units that handle accelerated computing tasks, recently grew past $2 trillion in market value. The megacap tech may be due for a pullback after a nine-week rally. Shares remain well extended after moving past a 505.48 buy point in a flat base.
That base formed on top of a double-bottom pattern, thus forming the powerful base on base ahead of Nvidia’s breakout past 505.48 in the week ended Jan. 12.
Nvidia holds a superb 99 Composite Rating. However, this rating is best used for stock selection, not for timing buys or sells in the stock market.
Outside the stock market, bitcoin surged again, rising 3% to a record of $71,568 initially. Then the digital currency accelerated the gain to more than 4% to $72,361. The iShares Bitcoin Trust (IBIT), a new spot Bitcoin price tracker, jumped 4.5% and reached new highs. It is extended from a seven-week cup with handle at 30.23.
Stock Market Today
The Nasdaq composite briefly undercut 16,000 to an early session low of 15,991 but bounced to 16,004 at around 10:15 a.m. ET, down nearly 0.5%.
Through Friday, the Nasdaq showed a 7.2% gain year to date, trailing a 7.4% advance by the S&P 500. The large-cap benchmark fell nearly 0.4% and traded near its early Monday low of 5,101. Meanwhile, the Dow Jones Industrial Average, which has fallen two straight weeks, edged 0.3% lower.
The small-cap Russell 2000 dropped nearly 0.7%. The popular index, however, is not giving back much of its nearly 3.3% gain over the past two weeks.
Investors are bracing for a fresh round of inflation data.
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Early Tuesday, the February numbers of U.S. consumer prices hit traders’ screens. On Feb. 13, the stock market fell hard on the January CPI report. Major indexes dropped in higher volume, a signature mark of pronounced professional selling.
Meta Stock Analysis
These days of heavy institutional profit taking, known as distribution, have piled up recently. Over the past eight sessions, the Nasdaq has logged four distribution days.
Meta has certainly helped the tech sector of the stock market lead the advance since November. The social media giant is sharply past its breakout point at 326.20. But the stock is now approaching a possible new entry point if it tests the rising 10-week moving average.
The Menlo Park, Calif., firm has notched excellent year-over-year increases in earnings (up 31%, 168% and 203% in the past three quarters) and sales (up 11%, 23% and 25%). Wall Street thinks Meta’s bottom line will rise another 45% in Q1 to $4.89 a share, according to MarketSurge, on a 26% increase in sales to $36 billion.
Meta reports its first-quarter results on April 24.
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Outside The Stock Market
Trading was fairly quiet in U.S. government bonds, but Econoday shows a full slate of Treasury auctions of bonds of various durations.
The benchmark 10-year bond yield was virtually flat at 4.08%.
Please follow Chung on X/Twitter: @saitochung and @IBD_DChung
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