Dow Jones futures rose overnight, along with S&P 500 futures and Nasdaq futures.
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A new stock market correction took another big hit on Thursday as the 10-year Treasury yield surged in reaction to the second day of the Fed meeting. The S&P 500 is below its August low, and the Nasdaq and Dow Jones are also close.
Major stocks came under further pressure. Nvidia (NVDA) is very similar to the Nasdaq, nearing August lows. Celsius Holdings (cell) sold off significantly on the second day and fell below the 50-day line. adobe (adobe), Uber Technologies (Uber), draft kings (DKNG), visa (V) and Amazon.com (AMZN) It stayed at that level for a few days before falling below its 50-day average.
tesla (TSLA) has pared back recent gains but maintains important support while building a new buy point. meta platform (Meta) also has new subordinate entries. general electric (G.E.), lululemon athletica (Lulu), Durian LPG (LPG), vertex pharmaceuticals (VRTX), arch capital group (ACGL) and costco wholesale (Fee) Also, stock prices are trending relatively well so far.
Investors should limit their exposure and not consider new purchases until the market shows real strength.
Nvidia stock, Meta, Tesla, Uber, Celsius are all IBD Leaderboard DKNG stock is on Leaderboard Watchlist.Tesla, Celsius, Lululemon, Meta stocks IBD50.Tesla stock is IBD big cap 20. Durian LPG was IBD’s ‘Stock of the Day’ on Thursday.
Dow Jones futures today
Dow Jones futures rose slightly relative to fair value. S&P 500 futures rose slightly, and Nasdaq 100 futures rose 0.1%.
The yield on the 10-year bond rose slightly to 4.5%.
A BOJ meeting will be held overnight amid much uncertainty as to whether the new BOJ governor will further ease ultra-easy monetary policy.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market correction
The stock market correction worsened as a sharp rise in US Treasury yields weighed on major indexes.
The Dow Jones Industrial Average fell 1.1% in Thursday stock market trading. The day after the S&P 500 fell below its follow-through day low on August 29, the S&P 500 fell 1.6% and the Nasdaq Composite Index fell 1.8%, a very bearish sign.
The S&P 500 has fallen below its August low and is at its lowest level in nearly three months. The Nasdaq had its worst closing price since early June. The Dow Jones Industrial Average hit its lowest level in nearly two months.
On Thursday, the long-slumped market was at its worst in terms of breadth, with declining stocks and new lows dominating.
The small-cap Russell 2000 fell 1.6%, while the Invesco S&P 500 Equal Weight ETF (RSP) fell 1.7%. Both are at their worst levels since early June, and the 200-day line is no longer visible.
US crude oil prices fell 3 cents to $89.63 per barrel. Copper prices fell 2.1%.
The 10-year Treasury yield rose 13 basis points to 4.48%, the highest yield since October 2007. The two-year Treasury yield was more in line with the Fed’s rate outlook, rising 3 basis points to 5.15%, hitting a new high of 17%. Best of the year.
As the soft landing theory takes hold on Wall Street and the Fed, the inverted yield curve is decreasing.
ETF
Among growth ETFs, Innovator IBD 50 ETF (FFTY) fell 2.6%. iShares Enhanced Technology Software Sector ETF (IGV) fell 2.4%. VanEck Vectors Semiconductor ETF (SMH) retreated by 2%. NVIDIA stock is the top weight in SMH.
ARK Innovation ETF (Arkku) fell 3%, ARK Genomics ETF (arcg) 2.65%. Tesla stock is Ark Investment’s No. 1 holding overall. DKNG stock is in the top 10 holdings. Cathie Wood’s Ark recently cut its stakes in Tesla and DraftKings.
SPDR S&P Metals & Mining ETF (XME) fell 2%. US Global Jets ETF (jets) fell 1%. SPDR S&P Home Builders ETF (XHB) fell 2.5%. Energy Select SPDR ETF (XLE) fell 1.4%, while the Healthcare Select Sector SPDR Fund (XLV) gave up 0.9% on the VRTX stock portion of XLV.
Industrial Select Sector SPDR Fund (XLI) fell 1.6%, making GE stock a major holding. Financial Select SPDR ETF (XLF) also fell by 1.6%.
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Tesla shares fell 2.6% to 255.70, reversing virtually all of the previous week’s gains prompted by analysts’ bullish views on the EV maker’s Dojo supercomputer and the prospects for self-driving. However, the stock price essentially remained at its 50-day line. TSLA stock received a decent handle, earning a buy point of 278.98.
Meta stock fell 1.3% to 295.55, slightly below its 50-day line. But after weeks of low trading volume, the internet giant is slowly fading away. Because it has a handle, the purchase point is as low as 312.87.
Meanwhile, GE stock tested the 50-day line and ended just below it, but within a tight sideways basis. LULU stock and Vertex rebounded from around the 50-day line during the day. According to MarketSmith, Arch Capital and Costco have withdrawn from near buy points. LPG stocks rallied towards a buy point for cups with handles.
Remember, stocks can hold until they run out of support, as Adobe, DraftKings, Uber, Visa, and Amazon showed on Thursday. The market is in a correction. If the major indexes continue to fall, most of the remaining resilient stocks will deflate.
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what to do now
Given the heavy selling in recent days and weeks, investors should have most or all of their money in cash.
At some point, the stock market will rebound. But don’t get excited about a strong open or even a strong day or two. The best days in market history are during corrections or bear markets.
Instead, wait for evidence that the new market rally has real momentum and wait for a follow-through date to confirm the uptrend.
For now, work on your watchlist. While some stocks are managing to hold on, many leaders are severely damaged and need time to repair. So keep an eye on stocks that show relative strength.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
X/ Follow Ed Carson on Twitter. @IBD_ECarson And in the next thread @edcarson1971 The latest information on the stock market, etc.
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