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Dow Jones futures fell slightly after hours, along with S&P 500 futures and Nasdaq futures. AI game Super microcomputer (SMCI) plummeted late due to profit losses and weak expectations.
The stock market recovered on Tuesday after several days of sharp losses, despite a late weakening. Nvidia (NVDA) And Metaplatforms (META) led megacaps, while MercadoLibre (MELI) broke out and AI played Palantir Technologies (PLTR) had a shortage of income.
But it is only day one of an attempted market recovery.
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Stocks bounce; Palantir, intuitive surgery, basic care in focus
Dow Jones futures today
Dow Jones futures fell 0.2% from fair value. S&P 500 futures lost 0.4%. Nasdaq 100 futures fell 0.4%.
Remember, overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading during the next regular stock market session.
Main income
Amgen (AMGN), Nvidia partner Super Micro, Tesla (TSLA) rival Rivaans (RIVN), Toast (TOST), Exelixis (EXEL), Halozyme (HALO), Fortinet (FTNT), Airbnb (ABNB) and recent IPO Reddit (RDDT).
Fortinet shares spiked, signaling they were moving above key levels after hitting a 2024 low on Monday. Halozyme jumped and Exelixis rose, and both could see action on Wednesday.
On the other hand, Super Micro shares retreated sharply lower after missing fourth-quarter guidance and giving mixed expectations. Investors rejected a planned 10-to-1 stock split.
Shares of Airbnb tumbled after the travel site warned of weaker demand. Shares of Toast and Reddit fell sharply. Rivian shares also fell sharply, with Tesla falling slightly in sympathy for its EV rival. Amgen shares retreated modestly toward a buy point.
Novo Nordisk (NVO) reports early Wednesday, with rival for weight-loss drugs Eli Lilly (LLY) expected before Thursday’s opening.
Nvidia stock is on Scoreboard. MercadoLibre is on the flagship IBD50 list. The video embedded in the article discusses Tuesday’s market action and analyzes PLTR stock, Intuitive surgery (ISRG) And Tenet healthcare (THC).
Join IBD experts as they analyze leading stocks and the market on IBD Live
Attempted stock market rally begins
The stock market rally rebounded on Tuesday after major losses in the previous three sessions. The major indexes all posted gains in the final hour, hitting resistance near Friday’s low.
The Dow Jones Industrial Average rose 0.8% in Tuesday’s stock trading, hitting resistance at the 50-day mark. The S&P 500 index rose 1%. The Nasdaq composite rose 1% after moving off its 200-day line on Monday. The small-cap Russell 2000 rose 1.2% and neared the 50-day mark after finding support at the 200-day mark on Monday.
A one-day bounce is not that meaningful. Tuesday was the first day of an attempted rally in the stock market. Look for a follow-up day, starting Friday, to confirm the rally attempt.
US crude oil prices rose 0.4% to $73.20 per barrel.
Ten-year government bond yields rose 10 basis points to 3.89% as global financial conditions normalize.
ETFs
Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) bounced 2.45%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.5%, with Palantir shares in the ETF. The VanEck Vectors Semiconductor ETF (SMH) recovered by 1.95%. Nvidia stock is No. 1 in SMH.
The ARK Innovation ETF reflects stocks with more speculative stories (ARKK) rose 1.5% and ARK Genomics (ARKG) stuck at 1.55%. Tesla stock is a notable stock in ARK Invest’s ETFs.
The SPDR S&P Metals & Mining ETF (XME) increased by 1%. The SPDR S&P Homebuilders ETF (XHB) and Energy Select SPDR ETF (XLE) gained 0.6% each.
The Healthcare Select Sector SPDR fund (XLV) advanced 0.5%. The Industrial Select Sector SPDR fund (XLI) rose 1.2%. The Financial Select SPDR ETF (XLF) rose by 1.6%.
Time the market with IBD’s ETF market strategy
Stocks to watch
Nvidia shares rose 3.8% to 104.25 on Tuesday, continuing their recovery from Monday’s lows. The AI chip leader is still below all its 10, 21 and 50 day moving averages and thus needs repair work. But it’s important to see how the market’s top stocks are handling themselves.
NVDA stock fell modestly overnight on Super Micro’s results and expectations.
Meta shares fell 3.9% to 494.10, just reaching the 50-day mark. But the tech titan needs more time to forge a new foundation.
MercadoLibre shares rose 1.9% to 1,180.39, closing above the base buy point of 1,792.05 cup-with-handle. On Friday, MELI stock rose above an early entry of 1,764.50 on the back of huge earnings. The shares held that level on Monday after briefly falling to the 50-day mark.
Shares of Palantir rose 10.4% to 26.59 on Tuesday after strong earnings, accelerating revenue growth and bullish guidance. The stock is close to a previous buy point of 27.50 that investors can still use. On Monday, PLTR tested its 200-day line before cutting losses.
What to do now
If an uptrend in the market lasts several weeks or months, you’ll want to get the bulk of that advance. But if you try to guess the exact moment when a rally starts, you risk getting burned several times.
Waiting just a few days for a follow-up day will reduce the risk of starting too early, although even that is no guarantee. Many confirmed uptrends fail.
Right now, investors need discipline. This means staying involved in the market and at the same time remaining patient. It also means continuing to work on watchlists, focusing on stocks that are holding key levels and showing relative strength. You don’t want to ignore the market, miss out on new rallies and look for stocks to buy.
Read The Big Picture every day to stay informed about market direction and the most important stocks and sectors.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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