Major indexes were mixed Tuesday as the two-day Federal Open Market Committee meeting was ready to begin. Magnificent Seven stock Nvidia (NVDA) remained in focus after the start of its multiday artificial intelligence conference. And Super Micro Computer (SMCI) was having a rough start as a newly minted member of the S&P 500 on the stock market today.
X
Stocks showed pockets of strength on Tuesday morning with the Dow Jones trying to stay afloat after Monday’s modest 0.2% gain. The Dow climbed 0.4%. The tech heavy Nasdaq showed the most weakness and dropped 0.5% while the S&P 500 shed a modest 0.1%. The small-cap Russell 2000 slid 0.3%.
Volume fell on the New York Stock Exchange and the Nasdaq compared with the same time on Monday.
The Invesco QQQ Trust (QQQ) slumped 0.5%. The Innovator IBD 50 ETF (FFTY) fared worse than the major indexes and skidded 2.3%.
The 10-year Treasury yield shed 3 basis points to 4.31%. And West Texas intermediate crude oil bumped up to just over $83 a barrel.
Bitcoin Falls, Taking Others With It
Bitcoin’s price fell to just over $62,500 taking bitcoin related stocks down with it. MicroStrategy (MSTR), which owns a large amount of bitcoin, plunged around 16% in recent trades on the stock market today, adding to Monday’s 15.7% drop.
Coinbase (COIN) skidded more than 8% and Marathon Digital (MARA) tumbled more than 8%. Riot Platforms (RIOT) lost 7%.
The S&P Gold Shares (GLD) exchange traded fund dipped 0.3%. The gold ETF is hovering in the 5% buy zone of a double-bottom base with a 191.36 buy point. The buy zone reaches to 200.93.
Investors are waiting for Federal Reserve Chairman Jerome Powell’s interest rate policy speech on Wednesday afternoon to see when the first interest rate cuts will occur. There are different views on the timing and amount of rate cuts in the future as inflation hangs on and the job market remains robust.
Magnificent Seven Stock Action
IBD 50 and Leaderboard stock Nvidia sank 2% following Monday’s keynote speech by Chief Executive Jensen Huang, to kick off the AI giant’s four-day 2024 GTC conference. He introduced its newest and more powerful chip named Blackwell. Nvidia stock remains well extended from its prior flat base and sits about 20% above its 50-day moving average.
Apple (AAPL) added another 0.7% on top of Monday’s 0.6% uptick. It was reported the iPhone maker was in talks with Alphabet (GOOGL) to incorporate Alphabet’s “Gemini” AI training model in Apple’s iPhones. Alphabet (GOOGL) fell 0.8% after Monday’s 4.6% jump in heavy volume.
Tesla (TSLA) sank nearly 2% on the stock market today after Monday’s 6.3% bounce.
Stock Market Today: Super Micro Computer Disappoints The S&P 500
Super Micro Computer stock tumbled 11% on news that the server and software maker announced a stock offering of 2 million shares. The drop follows Monday’s 6.4% sell-off. The AI stock fell below its 21-day exponential moving average with Tuesday’s move.
Shares fell below the 900 price level in Tuesday’s session. Super Micro stock was added to the S&P 500 on Monday and was the worst performer on the benchmark index on the stock market today.
GigaCloud Technology (GCT) plunged more than 12%, adding to Monday’s 20.7% sell-off in heavy volume. The stock found support at its 50-day line after falling from a 52-week high on Friday.
Stock Market Today: StoneCo Plunges, Tencent Pops
StoneCo (STNE) gapped down nearly 8% in heavy volume after the Brazilian fintech company reported higher-than-expected fourth-quarter earnings and but sales came in below estimates.
Tencent Music Entertainment (TME) popped nearly 5% after the China-based streaming music and entertainment platform operator reported in-line adjusted fourth-quarter earnings and revenue that topped views. Shares hit the 10.70 buy point of an ascending base and are in the 5% buy zone.
DLocal (DLO) plummeted nearly 17% after the South American global payments company missed its fourth-quarter earnings estimates but beat sales views. The stock fell below its 50-day line, triggering a sell signal.
Advanced Micro Devices (AMD) gapped down more than 6% and undercut its 21-day line but stopped before hitting its 50-day line on the stock market today. Its relative strength line has made a sharp reversal after its March 8 high.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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Source: investors.com
