Dow Jones futures edged lower overnight, along with S&P 500 futures and Nasdaq futures. AI chip giant Taiwan Semiconductor Manufacturing (TSM) will report key figures early Wednesday.
The stock market rally rebounded Tuesday, led by the Nasdaq.
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Nasdaq Leads Bounce; Robinhood, Commvault, Eli Lilly Flash Buy Signals
Nvidia (NVDA) extended a strong run, clearing another entry. Broadcom (AVGO) is above a buy point. Taiwan Semiconductor — which makes chips for Nvidia, Broadcom and many others — is between buy points. Taiwan Semi will report September sales early Wednesday.
Meanwhile, Robinhood Markets (HOOD) and Commvault (CVLT) broke out, while Cava Group (CAVA), Affirm Holdings (AFRM), Eli Lilly (LLY) and Tyler Technologies (TYL) all flashed buy signals.
Insurance stocks — hammered Monday as investors feared Hurricane Milton’s impact — rebounded somewhat on Tuesday. Ryan Specialty (RYAN) rose within a buy zone Tuesday while Brown & Brown (BRO) regained an early entry.
All told, that’s 11 actionable names excluding TSM stock.
Nvidia and Brown & Brown stock are on IBD Leaderboard, with Cava on the Leaderboard watchlist. Nvidia, Tyler Technologies and Cava stock are on SwingTrader. Nvidia stock is in the IBD 50. Ryan Specialty, Brown & Brown, Robinhood and Broadcom stock are on the IBD Big Cap 20.
Robinhood was Tuesday’s IBD Stock Of The Day.
The video embedded in the article discusses Tuesday’s market action and analyzes Robinhood stock, Commvault and Eli Lilly.
Dow Jones Futures Today
Dow Jones futures lost a fraction vs. fair value. S&P 500 futures edged lower and Nasdaq 100 futures fell 0.1%.
Crude oil futures rose slightly.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally bounced back Tuesday from Monday’s slide, led by tech and growth names.
The Dow Jones Industrial Average advanced 0.3% in Tuesday’s stock market trading. The S&P 500 index rose 1%. The Nasdaq composite jumped 1.45%, easily regaining its 18,000 level. The small-cap Russell 2000 climbed 0.1%, just reclaiming its 21-day line.
The S&P 500 recouped Monday’s losses while the Nasdaq did so or more.
While Nvidia and AI chips were notable performers Tuesday, software plays and megacap techs generally had a strong session. Many growth names outside of tech did well.
Chinese stocks sold off as policymakers didn’t announce fiscal stimulus, disappointing investors. But they’re still up massively from late September, on rate cuts and moves to promote lending, home purchases and stock buys.
China-related plays such as miners also were notable losers.
While insurers bounced back somewhat, Hurricane Milton is due to slam into Tampa, Fla., on Wednesday. It may be days before the extent of the damage is clear.
U.S. crude oil prices tumbled 4.6% to $73.57 a barrel.
The 10-year Treasury yield rose 1 basis point to 4.03%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rallied 1.2%. The iShares Expanded Tech-Software Sector ETF (IGV) popped 2.1%. The VanEck Vectors Semiconductor ETF (SMH) climbed 1.7%. Nvidia is the No. 1 holding in SMH, with Taiwan Semiconductor and Broadcom major players.
Reflecting stocks with more speculative stories, the ARK Innovation ETF (ARKK) leapt 1.6% and ARK Genomics (ARKG) edged up 0.1%.
The SPDR S&P Metals & Mining ETF (XME) fell 1.8%, and the Global X U.S. Infrastructure Development ETF (PAVE) dipped 0.2%. U.S. Global Jets (JETS) rose 0.8%. SPDR S&P Homebuilders ETF (XHB) gained 0.6%. The Energy Select SPDR ETF (XLE) slumped 2.6%.
The Health Care Select Sector SPDR Fund (XLV) advanced 0.5%, with Eli Lilly stock a top holding. The Industrial Select Sector SPDR Fund (XLI) climbed 0.2%, with the Financial Select SPDR ETF (XLF) up 0.6%.
Best Growth Stocks To Buy And Watch
Nvidia Stock
Nvidia popped 4% to 132.88, moving above the Aug. 26 high of 131.26, which works as either an early entry or an awkward handle buy point. On Monday, Nvidia stock gained 2.3% to 127.78, clearing a trendline entry around 126 as well as the Sept. 26 short-term high of 127.67
Shares have run up about 13.6% in a five-day win streak, which started with a bounce off the 50-day line.
Taiwan Semiconductor Sales
Taiwan Semiconductor reports September and third-quarter sales early Wednesday, with earnings due next week. The world’s largest contract chipmaker has a huge impact on the entire semiconductor sector.
TSM stock edged up 0.8% to 186.05 on Tuesday, slightly extended from a 175.45 cup-with-handle buy point. Investors could use the Sept. 26 high of 189.33 as an alternate handle or add-on entry.
Broadcom stock climbed 3.2% to 180.73, clearing a 180.25 handle buy point.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
The major indexes remain in a tight range. That’s allowing a lot of quality stocks to set up again. A new batch flashed buy signals Tuesday, offering an opportunity to add or reshuffle exposure.
Investors should continually update their watchlists and stay engaged. Be ready to identify setups and act on them.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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