The Dow Jones Industrial Average and other major stock indexes dropped in morning action Wednesday after Nvidia issued a warning on artificial intelligence chips. Wall Street also reacted to a jump in U.S. retail sales. Two other early movers were Tesla and ASML, the latter of which reported earnings.
After the opening bell, the Dow Jones Industrial Average fell 0.8%, or 300 points. The S&P 500 lost 1.4%, while the tech-heavy Nasdaq composite sold off 2.3%.
The 10-year Treasury yield ticked up to 4.33% early Wednesday. And oil prices rose, as West Texas Intermediate futures traded near $62 per barrel.
Among exchange traded funds, the Invesco QQQ Trust fell 2.3%, while the SPDR S&P 500 ETF lost 1.4% after the open.
Tesla stock skidded by 2.5% Wednesday, threatening to erase the past two days of gains. Shares of the Elon Musk-led company remain around 48% off their record high of 488.54, reached on Dec. 18.
Nvidia stock plunged 6% Wednesday as the company warned it would take a $5.5 billion charge after President Donald Trump's administration said the H20 AI chip will require an export license to ship to China.
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Trump Tariff News, Retail Sales
Trump says he'll take part in trade talks with Japan today. China is willing to hold negotiations, Bloomberg reported, but wants Trump officials to show "respect" and wants talks to include discussions of Taiwan.
In other economic news, the Commerce Department's retail sales for March met estimates, jumping 1.4%. Excluding vehicles, sales rose 0.5%. And excluding vehicles and gas, sales climbed 0.8%.
In stocks, ASML, Interactive Brokers, Travelers and United Airlines were key earnings movers.
ASML stock dropped 5.5%, while shares of Interactive Brokers plunged by nearly 8%. Travelers stock jumped 2.9%. Finally, United Airlines stock rallied 2.2% in early action.
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Dow Jones, Major Indexes Ease
On Tuesday, blue chips on the Dow Jones Industrial Average slipped 0.4%, or 155 points, while the S&P 500 dipped 0.2% and the Nasdaq inched lower.
Due to current market volatility, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are MercadoLibre, Netflix, Spotify and TJX.
Along with Apple and Nvidia, Dow Jones components making notable moves this week were Amazon.com, Microsoft and UnitedHealth.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: UnitedHealth Above Buy Point
Shares of Dow Jones component UnitedHealth gained 0.4% Wednesday. The stock fell 0.6% Tuesday, but remained above a 553.91 buy point, according to MarketSurge chart analysis. A cup-with-handle base is also likely forming that will have a 606.36 entry.
Outside the Dow, e-commerce giant MercadoLibre offers a 2,202 buy point in a double bottom, according to IBD MarketSurge. And shares bullishly regained their 50-day line Tuesday. MercadoLibre stock dropped 1.2% Wednesday.
Streaming giant Netflix is building a double bottom that offers a 998.70 buy point. Shares lost 0.7% after the opening bell Wednesday, just shy of their latest entry. Earnings are due late Thursday.
Music streaming leader Spotify has formed a double-bottom base with a 621.20 buy point. Spotify stock fell 0.7% in morning action Wednesday.
Finally, off-price retailer TJX is is still above a 127.58 buy point in a double bottom despite a 1.6% drop Tuesday. TJX stock inched up in early morning trades.
Keep in mind that now is not a good time to buy stocks amid heavy selling in recent weeks. IBD currently recommends 0% to 20% stock exposure under current conditions.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Wednesday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| UnitedHealth | 553.91 | Double bottom | |
| Spotify | 621.20 | Cup with handle | |
| TJX | 127.58 | Double bottom | |
| Netflix | 998.70 | Double bottom |
Source: IBD Data as of April 15
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Dow Jones Leaders: Amazon, Apple, Microsoft
Magnificent Seven stocks are rebounding from their lows after Trump's 90-day pause on tariffs. Dow Jones component Amazon fell 1.5% early Wednesday, leaving the stock sharply below its 200-day line.
IPhone maker Apple sold off 2% Wednesday morning. Its shares recently closed at their highest level since April 3.
Finally, software giant Microsoft dropped 1.5% Wednesday. Shares reached a new 52-week low last week before rebounding back to their 50-day line, a key resistance level to watch.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
