A rally brought sizable gains for the Dow Jones Industrial Average and other major indexes Wednesday, but stocks significantly pared their winnings by the time the markets closed. After an initial burst wrought by President Donald Trump softening his stances on China and the Federal Reserve, markets faded to the point where the Dow, S&P 500 and Nasdaq wound up near session lows on the stock market today.
Stocks on the Dow Jones index had bolted more than 1,000 points higher in early trades, but those gains were whittled down to 419 points, or 1.1%, by the time the closing bell was sounded. The same was true for the S&P 500. It too posted larger gains but trimmed them to 1.7%.
The Nasdaq led the charge, finishing with a 2.5% increase, though it too had surged, up by 4% at one point. The tech-dominated index along with the benchmark S&P 500 tested, but closed below their 21-day moving averages. Further, all three major indexes remain firmly below their 200-day moving averages.
Volume on both the New York Stock Exchange and Nasdaq was higher compared with the same time on Tuesday. Advancers outnumbered decliners by roughly 3-to-1 on both exchanges.
Small caps on the Russell 2000 also pared gains but remained up 1.5% and finished right at its 21-day line. That index also finished near session lows
The Innovator IBD 50 exchange traded fund closed right at the 21-day with a 0.8% gain. The yield on the benchmark 10-year Treasury note was unchanged at 4.39%.
3:30 p.m. ET
Beige Book: 'Uncertainty Around Trade Policy'
On Wednesday, the Fed's Beige Book noted "uncertainty around international trade policy" dampened economic outlook. The report comes ahead of the Fed's meeting on May 7 when traders expect rates to stay unchanged.
1:58 p.m. ET
Trump Soothes The Markets; Wood Loads Up On Nvidia
Much of Wednesday's market surge came after President Trump softened his stance on trade with China and his position on retaining Federal Reserve Chairman Jerome Powell.
Late Tuesday, Trump said tariffs on China will "come down substantially" though they would not be reduced to zero. Trump plans to meet with China's President Xi Jinping in May. Trump also dismissed rumors he might try to fire Powell.
Then on Wednesday, U.S. Treasury Secretary Scott Bessent said at a gathering of the Institute of International Finance that, "'America First' does not mean America alone. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners."
The remarks follow Tuesday reports that Bessent anticipates a de-escalation of the trade war with China.
Elsewhere, famed investor Cathie Wood loaded up on Nvidia stock, according to a website that tracks trades in Wood's Ark portfolio. The Ark Autonomous Tech exchange traded fund added $1.1 million worth of Nvidia shares on Tuesday. Nvidia jumped and approached its 21-day moving average Wednesday.
12:27 p.m. ET
Stock Market Today: Breakouts
Wednesday's strong action led to several breakouts. StoneX broke out of a double-bottom base with a buy point of 83.53.
Further, NatWest Group cleared a buy point of 12.65. Virtu Financial and Stride tested buy points in bases.
Elsewhere, IBD 50 stock Duolingo gapped up above the 50-day moving average. Argan and Root also leapt higher.
10:58 a.m. ET
Economic News: Purchasing Managers Index
In economic news, S&P Global's Purchasing Managers Index for the manufacturing sector rose to 50.7 vs. economists consensus view of 49.4 for April. The report's services index came in at 51.4, compared with views for 52.5. The report's composite index dropped to 51.2 after March's 53.5 reading.
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Stock Market Today: Tesla Overcomes Earnings Miss
Tesla bolted higher despite falling short on first-quarter earnings expectations. Earnings of 27 cents per share declined 40% from the prior year while sales fell 9% to $19.3 billion.
Analysts had expected earnings of 41 cents a share on sales of $21.3 billion. Chief Executive Elon Musk was bullish on the company's pilot robotaxi launch in Austin and on an affordable electric vehicle, which is set to start production midyear.
Earnings also moved Check Point Software. The company said sales of $638 million increased 7% from the prior year while earnings grew 9% to $2.21 per share. Both edged past views. Shares fell further below their 50-day moving average.
GE Vernova reported first-quarter sales of $8 billion with earnings of 91 cents per share. Both soared past views of $7.6 billion in sales with per-share earnings of 45 cents. GE Vernova stock rebounded from the 50-day moving average in higher volume.
AT&T also rose after first-quarter earnings of 51 cents per share met views while sales beat estimates of $30.4 billion, increasing 1% to $30.6 billion. The stock is holding its 50-day line as it carves out a base.
These Dow Jones Stocks Surge
Boeing jumped after its earnings report. Sales grew 18% to $19.5 billion vs. views of $19.4 billion. The aerospace behemoth also announced a loss of 49 cents per share.
Analysts had expected a loss of $1.18 per share. Shares cleared the 50-day line in a double-bottom base that has a buy point at 184.40.
A number of stocks rallied in the Dow on the stock market today. Amazon led the index higher along with Boeing, American Express and Goldman Sachs.
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