Dow Jones futures fell sharply early Thursday, along with S&P 500 futures and Nasdaq futures, as the market correction resumed its downward trajectory. AI chipmaker Marvell Technology, Chinese e-commerce giant JD.com and Zscaler were big earnings movers.
The stock market rose Wednesday as President Donald Trump gave the U.S. auto industry a one-month reprieve from Canada and Mexico tariffs. The Nasdaq regained a key level while the S&P 500 found support, as a nascent market rally attempt tries to get going.
Palantir Technologies reclaimed the 50-day line Wednesday, but was falling in the premarket. Investors should be cautious about former growth leaders.
It's still a time to be defensive.
Dow Jones Futures Today
Dow Jones futures lost 1% vs. fair value. S&P 500 futures declined 1.25%. Nasdaq 100 futures fell 1.6%. The Nasdaq composite is set to undercut the 200-day line once again, with the S&P 500 not far above it.
The 10-year Treasury yield rose to 4.29%.
While U.S. markets are struggling with Trump tariff uncertainty and AI stock woes, Hong Kong's Hang Seng index has surged to a four-year high while German markets have soared to all-time levels.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Trump Tariffs Delay For Automakers
The White House announced Wednesday that automakers will get a one-month exemption from the 25% Trump tariffs on Canada and Mexico, which started Tuesday.
President Trump spoke with the CEOs of General Motors, Ford Motor and Chrysler parent Stellantis.
Several U.S. plants faced near-term closures. GM stock jumped 7.2% on Wednesday, Ford 5.8% and Stellantis 9.3%, though all have been trending lower.
Trump still plans to impose global auto tariffs on April 2.
However, Agricultural Secretary Brooke Rollins told Bloomberg Wednesday evening that Trump is mulling exempting some agricultural products from Canada and Mexico tariffs, citing potash and fertilizer specifically. Fertilizer imports from Canada are key for U.S. farmers, while the U.S. imports a lot of fruits and vegetables from Mexico.
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Stock Market
The stock market rebounded on the Trump tariffs delay for automakers, perhaps on hopes for further reprieves or carveouts for the auto industry and beyond to curb the economic fallout. The Dow Jones Industrial Average rose 1.1% in Wednesday's stock market trading. The S&P 500 index popped 1.1% as well. The Nasdaq composite jumped 1.5%. The small-cap Russell 2000 gained 1%.
The Nasdaq reclaimed the 200-day moving average. Meanwhile, the S&P 500, as well as the Invesco S&P 500 Equal Weight ETF and First Trust Nasdaq 100 Equal Weighted Index ETF, rebounded from that key level.
The Nasdaq is two days into a market rally attempt. A follow-through day to confirm the Nasdaq rally attempt could come as soon as Friday, with the jobs report due before the open that day. The S&P 500 and Dow Jones are just on day one of a rally attempt. Undercutting Tuesday's low would end the rally attempt for each of the major indexes.
U.S. crude oil prices sank 2.9% to $66.31 a barrel.
The 10-year Treasury yield jumped 5.5 basis points to 4.26%, after hitting a fresh 2025 low of 4.11% on Tuesday morning.
The U.S. dollar fell to a four-month low. The WSJ Dollar index has suffered its best three-day percentage decline since November 2022.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF bounced 2.5%. The iShares Expanded Tech-Software Sector ETF gained 1.7%, with Palantir stock a major holding. The VanEck Vectors Semiconductor ETF rallied 1.85%.
ARK Innovation ETF jumped 2.9% and ARK Genomics ETF climbed 1.8%
SPDR S&P Metals & Mining ETF leapt 3.15%. The Energy Select SPDR ETF fell 1.45% and the Health Care Select Sector SPDR Fund advanced 1%. The Industrial Select Sector SPDR Fund rebounded 1.6%.
The Financial Select SPDR ETF rose 0.6%.
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Earnings
Marvell Technology and Zscaler reported Wednesday night.
MRVL stock plunged in overnight action after Marvell just beat earnings views and guided roughly in line. Shares of the custom AI-chip maker rose 2.05% in Wednesday's regular session to 90.14, holding the 200-day line. But Marvell stock has sold off hard in recent weeks. Broadcom, another custom AI-chip maker, reports Thursday night. AVGO stock is also finding 200-day support after damaging losses, but fell solidly overnight on Marvell's results.
ZS stock rose solidly in extended trade after Zscaler earnings topped and the cybersecurity software maker guided higher. Shares, which have been trading around the 50-day and 200-day lines, are moving toward the top of a messy consolidation.
JD.com reported strong earnings early Thursday, sending shares up solidly. On Wednesday, JD stock jumped 6.9% to 43.76, just above a 43.63 cup-with-handle buy point, according to MarketSurge.
BJ's Wholesale slightly beat views early Thursday, though the midpoint of its fiscal 2025 EPS guidance is below consensus. BJ's stock edged higher before the open, signaling a move back to or above a 100.74 cup-with-handle buy point. Larger rival Costco Wholesale, holding in a buy range, is due after the close.
Palantir Stock
Palantir stock rallied 6.8% to 90.13 on Wednesday. Shares moved back above the 50-day line after hitting resistance there for a few sessions. PLTR stock is also above the top of a short consolidation cleared when the AI software play gapped higher on Feb. 4 following strong earnings.
But shares fell modestly Thursday morning, though still above their 50-day for now.
Investors should be cautious about moving back into high-octane growth stocks after heavy losses. Palantir stock sold off in heavy volume since peaking on Feb. 19, quickly erasing post-earnings gains. It's showing more fight than some other former leaders, but may still need rest.
PLTR stock has an 21-day average true range of nearly 9%. If the market sells off, Palantir and other higher-ATR stocks may see further steep losses.
What To Do Now
The stock market staged a strong rebound around critical levels on the Trump tariffs news.
Investors should remain cautious. One positive session is nothing special in a correction. Markets are prone to huge headline-driven intraday and daily swings right now. For the next several weeks, at least, Trump tariff news has the potential to swing stocks up and down violently. Those aren't ideal conditions for a clear uptrend, as Thursday morning's action suggests.
But if the market rally builds momentum, whether it's on Trump tariffs news, the jobs report or no clear catalyst, you want to be ready. Have your watchlists up to date.
Look for stocks that are showing relative strength. Don't assume the old leaders like Palantir will reassert dominance. Make sure you're looking for stocks outside the U.S.
It wouldn't be a surprise to see the rally attempt fail, or even a confirmed rally. Take the market one day at a time.
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