Dow Jones Futures: Nvidia Leads Big Upside Market Reversal, 6 Stocks In Buy Areas (Live)

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures.

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Nasdaq turns upward after sharp drop. Focus on ONON, APP, and DASH

The stock market made a dramatic bullish turn on Wednesday, with the major stock indexes recovering from early losses, the Nasdaq surging and the S&P 500 regaining key levels.

NVIDIA (NVDA) rose for the third consecutive trading day, with trading volume increasing significantly. Tesla (TSLA) recovered from a sharp drop in the morning and rose slightly.

meanwhile, App Lovin (Apps), Service Now (now), Spotify (spot), Eli Lilly (Lily), Fresh Pet (FRPT) and Pending (Onon) all issued buy signals on Wednesday.

Nvidia and Freshpet stock prices IBD LeaderboardEli Lilly and On Holdings shares are listed on SwingTrader. Nvidia, On Holdings, Eli Lilly and ServiceNow shares are listed on SwingTrader. IBD50Eli Lilly’s stock price IBD Big Cap 20Wednesday’s IBD Stock Of The Day was “On Holding.”

In a video embedded in the article, we break down Wednesday’s bullish moves and highlight the strength of AppLovin stock, On Holding, DoorDash (dash).

Dow Jones Futures Today

Dow Jones futures were down slightly relative to fair value, S&P 500 futures were trending higher and Nasdaq 100 futures were up 0.1%.

At 8:30 a.m. ET on Thursday, the Labor Department will release the Producer Price Index and weekly jobless claims for August.

Remember that overnight movements in Dow futures or any other stocks do not necessarily translate into actual trading in the next regular stock market session.

IBD experts break down major stocks and markets on IBD Live.

Stock market rise

The stock market bull market was sold off at the open following Tuesday’s presidential debate, Wednesday’s CPI inflation report and continuing concerns about lenders and consumer spending. But the major stock indexes, which had fallen more than 1% during the day, rebounded from morning lows. Nvidia led the Nasdaq’s gains.

The Dow Jones Industrial Average rose 0.3% in the stock market on Wednesday after falling below its 50-day line intraday. The S&P 500 index rose 1.1%, recovering its 50-day and 21-day lines after apparently facing severe rejection around those levels. The Nasdaq Composite index rose 2.2%, climbing above its 21-day line after falling 1.4% intraday. The small-cap Russell 2000 rose 0.3% after falling toward its 200-day line intraday.

Invesco S&P 500 Equal Weight ETF (RSP) briefly fell below its 50-day line in morning trading before rising slightly and holding above its 21-day line.

Wednesday’s sharp price swings underscore how important the overall market is to individual stocks, with some major stocks falling sharply on Wednesday morning before rebounding.

The Nasdaq is up 4.2% so far this week, but it’s still having an inside week. The tech-heavy broad index is still trading below its 50-day average, but the gap is certainly narrowing.

U.S. crude oil prices rose 2.37% to $67.31 a barrel

The yield on the 10-year Treasury note rose one basis point to 3.65%, after hitting a 52-week low of 3.61% in intraday trading.

ETF

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 1.1%. ServiceNow shares are a large holding in IGV, which also has AppLovin in its ETF.SMH) surged 5.2%. Nvidia shares are SMH’s largest holding.

Reflecting more speculative story stocks, the ARK Innovation ETF (arc) rose 2.2%, while the ARK Genomics ETF (arc) 1.8%. Tesla shares are a major holding across Ark Invest ETFs. Cathie Wood has also taken a big position in NVDA shares in recent months.

SPDR S&P Metals & Mining ETF (XME) rose 1.95%. The SPDR S&P Home Builders ETF (translation) rose 0.2%.XL) fell 0.9%, while the Health Care Select Sector SPDR Fund (Chapter 45) fell 0.3% after the debate, with many healthcare stocks fluctuating widely. Eli Lilly shares are a major holding in XLV.

Industrial Select Sector SPDR Fund (Article 41) rose 0.2%. The Financial Select SPDR ETF (XLF) fell 0.5%.

Timing the Market with IBD’s ETF Market Strategy

Stocks near a buy point

AppLovin surged 13.15% to 97.57, re-surpassing a buy point at 91.91 from the 21-day line, and is now slightly up from the official entry but still within range of a higher alternative buy point at 93.70.

The relative strength line, which tracks the stock’s performance against the S&P 500 Index, is at a 52-week high. Early Tuesday morning, Bank of America raised its price target on APP shares to 120.

ServiceNow shares rose 1.75% to 875.17, reversing gains after falling below a flat-base buy point of 850.33 intraday.

Spotify shares rose 2.9% to 336.60, bouncing off the 50-day line to re-establish a previous flat base buy point at 331.08 and breaking above the 21-day line. After this week, SPOT shares will find a new base at 359.38.

Eli Lilly shares rose 2% to 919.54, bouncing off the 50-day line and closing just above the 21-day line. This is a good opportunity to get in early. Investors could view the Aug. 2 high of 972.53 as the top of a V-shaped consolidation.

Freshpet shares rose 1.8% to 137.62, above a buy point of 136.35, after falling below the 21-day line during trading on Tuesday.

On Holdings shares rose 2.6% to 46.43 after falling as low as 43.38 intraday. The stock closed above the 21-day moving average and a consolidation buy point of 44.30.

Tesla stock

Tesla shares rose 0.9% to 228.21, holding above its 50-day moving average. The electric vehicle giant dipped to 216.80 intraday but found support at its 21-day moving average. The stock was up 4.6% on Tuesday.

The consolidation buy point for TSLA stock is 271, but investors could use the Sept. 5 high of 235 as an aggressive entry point.

October is slated to be a busy month for Tesla, with third-quarter deliveries (likely on October 2nd), a robotaxi event on October 10th, and the company’s third-quarter earnings report on October 16th.

Nvidia stock

Nvidia shares rose 8.1% to $116.86, again above its 21-day moving average. The AI ​​chip leader approached its 50-day line and closed just above its 10-week line.

Santa Clara, California-based Nvidia recorded its first significant increase in trading volume in a month.

NVDA shares are up 13.6% this week, but that comes after a 13.9% drop the week before and a 7.7% drop the week before that.

Nvidia shares have ridden an unwieldy handle to a 131.26 buy point.

The US government is close to allowing Nvidia’s AI chips to be exported to Saudi Arabia, Semafor reported citing sources at the Saudi AI summit Gain.

As the most important company and stock of the past two years, it’s hard to overestimate Nvidia’s importance to the market.

Meanwhile, NVIDIA’s chip maker Taiwan Semiconductor (TSMC) and Broadcom (AVGO) recovered to the 50-day line.

What to do now

Wednesday’s action was encouraging, especially considering the initial negative movement. Many stocks were giving buy signals on Wednesday, and even more are giving buy signals.

The S&P 500 is clearly above its 50-day line but not conclusively, and the Nasdaq still needs to reach that key level.

You could take on some pilot positions, but keep your overall exposure low and be prepared to exit quickly.

There is nothing wrong with waiting for solid confirmation that the market uptrend is back on track, but don’t get stuck in a bearish or bullish mindset – as the market changes, you need to adapt to it.

Whether investors choose to be aggressive or patient, they’ll need to keep a close eye on share price movements.

Read The Big Picture every day to stay on top of market direction, leading stocks and key sectors.

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