The Dow Jones and other major indexes rallied Thursday afternoon after Federal Reserve Chair Jerome Powell testified for a second day before Congress. Nvidia (NVDA) cleared a new benchmark, and Tesla (TSLA) fought profit concerns on the stock market today. Retail and software earnings also moved.
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The Dow Jones Industrial Average headed into a second winning session and held the bulk of early gains, trading 0.4% higher. The S&P 500 climbed more than 1%. Among the 11 sectors in the benchmark index, real estate and financials lagged while others gained ground.
But it was the Nasdaq that continued to lead the way, as the tech-heavy index scaled 1.6% higher. Small caps also were on the rise, as the Russell 2000 moved up 0.7%.
Volume on both the New York Stock Exchange and Nasdaq was lower compared with the same time on Wednesday. Breadth continued to be encouraging, however, as advancers beat decliners by nearly 8-to-3 on the NYSE and 5-to-3 on the Nasdaq.
Among exchange traded funds, the Innovator IBD 50 ETF (FFTY) added 0.4%. And the yield on the benchmark 10-year Treasury note ticked up to 4.12%.
Also, bitcoin rose and continued to hold above $67,000, according to CoinMarketCap.
Stock Market Today: Powell Gives An Encore
On Thursday, Fed Chair Powell addressed the Senate Banking, Housing and Urban Affairs Committee, and mentioned the need for new rules to address crises such as the bank run of 2023. The Fed chief also indicated he was surprised by two events as rates rose. The first was the effect of failing institutions such as Silicon Valley Bank.
“We were aware of it, but we probably didn’t appreciate it enough,” he said. He added the other surprise came via the quick fall in inflation.
“It’s not consistent with the historical record, but it’s a really positive thing,” he said.
Powell’s appearance came a day after he told a House panel that he expected rate cuts later this year but that it was too soon to implement them.
Also in economic news, initial unemployment claims for the week ended March 2 came in at 217,000. That was higher than economist views for 215,000 and was unchanged from the prior week, according to Econoday. Economists see February payroll data, due Friday, dropping off sharply to 190,000 after January’s 353,000.
Nvidia stock climbed more than 3% on the stock market today as it cleared the 900 level for the first time. Shares of the artificial intelligence leader have launched more than 80% above a 505.48 buy point off a flat base. Nvidia’s most recent breakout began Jan. 8.
Meanwhile, Tesla tried to reverse higher after analysts feared the electric-vehicle giant would post a loss this year. Tesla stock was up 1.6% in recent action, but shares dropped a collective 13.7% in the previous three sessions.
According to analysts from Morgan Stanley, Tesla could lose money in 2024. Analysts see weak demand despite price cuts and an industry shift to hybrid vehicles as strong headwinds.
Dow Jones: Few Laggards
Laggards and leaders were nearly evenly split on the Dow Jones index in noon trades. Top gainers included Intel (INTC), American Express (AXP) and Caterpillar (CAT).
Intel retook the 50-day moving average, according to IBD MarketSurge chart analysis. IBM (IBM) is trying to break out at 196.90 while Microsoft (MSFT) tested the 50-day line. Apple (AAPL) tried to break a six-day losing streak.
Movers In The Stock Market Today
MongoDB (MDB), Samsara (IOT) and DocuSign (DOCU) are due to report results after the market close. MongoDB fell in the early going but reversed higher in afternoon trades while Samsara tried to hold its 50-day moving average, according to IBD MarketSurge. DocuSign also rose.
Among chip stocks, Broadcom (AVGO) and Marvell Technology (MRVL) were rallying into earnings, due after the market close. Broadcom debuted its advanced switches for connecting AI servers in data centers ahead of its results.
Retail earnings also moved stocks. BJ’s Wholesale (BJ) surged after comparable sales excluding gas grew 0.5% in the fourth quarter though income from membership fees rose 7%.
Kroger (KR) rose 9% after earnings improved for the second straight quarter as the company’s sales continued to decline. Its full-year outlook suggested 1% sales growth at the midpoint. American Eagle Outfitters (AEO) scaled back after a 7% gain following its results. Shares were higher by 3% in recent action.
Stock Market Today: Costco Due To Report
Costco (COST) plans to report after the market close. Abercrombie and Fitch (ANF) was 5% lower after reporting Wednesday.
In health care, Novo Nordisk (NVO) surged 9% to a record high as its new obesity drug showed the promise of being more effective than Wegovy. The stock is a holding on IBD Leaderboard as well as the IBD 50.
Shares formed a three-weeks-tight pattern with a buy point of 124.87 ahead of the news. They remain extended on the stock market today.
Finally, IBD SwingTrader holding TechnipFMC (FTI) is near a buy point of 22.78 in a cup base. The stock has a Composite Rating of 94.
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