The Dow Jones Industrial Average and other indexes continued to feel the weight of rising yields an hour before the closing bell Monday, while tensions in the Middle East made investors wary. Artificial intelligence leaders Nvidia (NVDA) and Super Micro Computer (SMCI) managed to buck the trend on the stock market today, but Magnificent Seven stock Tesla (TSLA) fell.
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The Dow dropped more than 1%, falling nearly 500 points, while losses for the S&P 500 and Nasdaq exceeded 1% as well. All three indexes are hugging their 10-day moving averages.
Volume was lower on the New York Stock Exchange and the Nasdaq compared with the same time on Friday. Decliners outnumbered advancers by more than 3-to-1 on the NYSE and by nearly that same ratio on the Nasdaq.
The small-cap Russell 2000 fell 1%, and the Innovator IBD 50 (FFTY) exchange traded fund reversed 0.5% lower.
Crude oil rose more than 3% near $77.19 a barrel amid rising tensions in the Middle East. Further, the yield on the benchmark 10-year Treasury note surged three basis points to 4.02%, which helped dampen stocks Monday. It is the first time since Aug. 8 that the 10-year yield topped the 4% level.
In economic news, Thursday’s consumer price index report for September could move markets. Economists expect a 0.1% increase in CPI from August, with core inflation rising 0.2%.
Amazon (AMZN) fell after a downgrade from Wells Fargo. Amazon stock dropped 3%, pushing shares close to their 50-day moving average.
1:54 p.m. ET
Stock Market Today: Nvidia Gains, Super Micro Soars
Nvidia bucked Monday’s selling trend and headed for its fourth straight day of gains since it rebounded from the 50-day moving average on Wednesday. The stock cleared a trendline entry at around 127 in early action and gained more than 3% in afternoon trades.
Nvidia sits on the IBD 50, IBD Leaderboard and IBD SwingTrader lists. Recent gains have lifted the stock back to a market capitalization of $3 trillion.
Super Micro Computer soared 15%. But its chart remains weak as the 50-day moving average languishes below the longer 200-day line.
Shares rose after the company announced that it was currently shipping more than 1000 graphic processing units each quarter and that it had a new liquid-cooling offering. Supermicro stock was the best S&P 500 performer on the stock market today.
Tesla fell more than 2% ahead of its robotaxi event on Thursday. The stock has been forming a cup base and now shows a handle entry at 264.86.
Cathie Wood Sells Taiwan Semi
Cathie Wood’s ARK Autonomous Tech ETF (ARKQ) sold shares of Nvidia AI chipmaker Taiwan Semiconductor (TSM). Chart analysis also shows that the stock is in a buy zone from a buy point of 175.45.
As of Friday’s closing price, the stock had gained 74% year to date. Third-quarter results are due on Oct. 17.
Meanwhile, Intapp (INTA) triggered a round-trip sell signal by falling below its buy point of 45.43 after a 14% gain.
And shares of Vista Outdoor (VSTO) gapped up and broke out from a flat base with a buy point at 41.11 on news that the sports products maker is selling two of its businesses units.
12:22 p.m. ET
Insurance Stocks Sell Off
Viking (VIK) broke out at a buy point of 37.25 in higher-than-average volume. But shares dipped below the entry at midday in the stock market today.
In building and heavy construction, Fluor (FLR) is breaking out at a 50.48 buy point from a double-bottom base. Volume was 50% above average.
In the insurance sector — one of the worst performing on Monday — Kinsale Capital (KNSL) and Hamilton Insurance (HG) sold off and plunged below their 50-day moving averages in heavy volume.
10:40 a.m. ET
Dow Jones Stocks
Apple (AAPL) fell more than 1% after Jefferies analysts downgraded the stock from a buy rating to hold, saying the hardware has some catching up to do for iPhones to be able to handle AI tasks. Shares are testing the 21-day exponential moving average.
Fellow Dow Jones component Chevron (CVX) rose 0.5% as oil stocks got a boost on Monday. JPMorgan Chase (JPM) held to its support level at the 50-day moving average in the stock market today, ahead of its earnings report later this week.
Tech and health care stocks gave up early gains on the Dow Jones index.
Stock Market Today
Oil stocks rose. Marathon Oil (MRO) broke out from a double-bottom base at 29.05, according to the daily chart on IBD MarketSurge.
Delta Air Lines (DAL) has its third-quarter results scheduled for Thursday. The stock is forming a cup-with-handle base with a 52.45 buy point.
Banks also kick off third-quarter earnings this week. JPMorgan Chase and Wells Fargo (WFC) report on Friday.
China stocks have been rallying amid news of more anticipated stimulus from the National Development and Reform Commission due Tuesday. Those stocks may have more room for growth, according to Goldman Sachs strategists.
China internet stock Baidu (BIDU) and retailer Alibaba (BABA) rose 1% to 2.3%, although PDD (PDD) and JD (JD) reversed slightly lower.
Pfizer (PFE) gapped above its 50-day moving average the after reports that activist investor Starboard Value has a $1 billion stake in the drugmaker with plans to “make changes to turn its performance around.” Pfizer is forming a flat base with a 31.54 buy point.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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