Dow Jones futures fell modestly early Thursday, along with S&P 500 futures and Nasdaq futures. Trump tariffs remain in focus.
The stock market had a mixed but mostly positive, Nasdaq-led session Wednesday buoyed by tame CPI inflation data. But much of the gains were concentrated in hard-hit former leaders Tesla, Nvidia, Palantir Technologies, Micron Technology and AppLovin.
Some defensive names continued to retreat, including Dow giants Verizon Communications, McDonald's and Travelers.
After the close, Adobe earnings topped but guidance was a little light. ADBE stock fell solidly late, trending lower for he past year.
Intel announced after the close that Lip-Bu Tan will be the struggling chipmaker's new CEO. Tan was previously CEO of chip-design software maker Cadence Design Systems. Intel stock soared late, signaling a move above its 50-day line but not its 200-day.
Dow Jones Futures Today
Dow Jones futures lost 0.3% vs. fair value. S&P 500 futures declined 0.4% and Nasdaq 100 futures fell 0.65%.
President Donald Trump said Thursday morning that the U.S. will retaliate if new European Union tariffs aren't removed immediately, threatening a 200% tariff on EU wine. On Wednesday, the EU slapped duties on some U.S. goods after Trump tariffs kicked in steel and aluminum imports worldwide. Canada also raised U.S. tariffs in response.
The 10-year Treasury yield edged up to 4.33%.
The PPI inflation report is on tap at 8:30 a.m. ET.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Wednesday
The stock market had a number of intraday swings with the Nasdaq ultimately closing solidly higher and the S&P 500 also advancing.
The February consumer price index came in lighter than expected, with core CPI inflation falling to the lowest level since April 2021. But the data offers a snapshot before notable Trump tariffs, while some of February's tame figures reflected economic weakness.
The Dow Jones Industrial Average fell 0.2% in Wednesday's stock market trading. The S&P 500 index gained 0.5%. The Nasdaq composite jumped 1.2%. The small-cap Russell 2000 edged up 0.1%.
Tesla, Nvidia, Palantir, Micron and AppLovin stock accounted for a huge amount of the Nasdaq and S&P 500 gains.
The Invesco S&P 500 Equal Weight ETF fell 0.5%, hitting a fresh six-month low.
The First Trust Nasdaq 100 Equal Weighted Index ETF rose just 0.3%.
Wednesday marked day one of a stock market rally attempt. But the market has had a number of one-day or two-day rally attempts that quickly failed.
U.S. crude oil prices popped 2.2% to $67.68 a barrel.
The 10-year Treasury yield rose three basis points to 4.315%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 1.2%. The iShares Expanded Tech-Software Sector ETF bounced 2%, with Adobe, AppLovin and PLTR stock notable holdings. The VanEck Vectors Semiconductor ETF rallied 2.9%. Nvidia stock is the top SMH component, with Micron stock and Intel also key names.
ARK Innovation ETF jumped 2.95% and ARK Genomics ETF gained 2.3%. Tesla stock is the No. 1 holding across ARK Invest's ETFs, with Palantir also a major position.
Time The Market With IBD's ETF Market Strategy
Tesla Stock
Tesla stock jumped 7.6% to 248.09 on Wednesday. That's despite TSLA stock getting three new price-target cuts. On Tuesday, shares rose 3.8% as President Donald Trump hailed Elon Musk's DOGE work and said he would buy his own Tesla, holding a quasi-infomercial for the EV maker outside the White House. But after diving 15.4% on Monday, Tesla is still down 5.55% for the week and below all its moving averages, according to MarketSurge.
Nvidia Stock
Nvidia stock popped 6.4% to 115.74 after reversing higher Tuesday from a six-month low. BofA Securities said NVDA stock is trading "at a very compelling price" ahead of the AI chip giant's flagship GTC event next week. NVDA stock is up 2% for the week but well below its 50-day and 200-day lines.
Palantir Stock
Palantir stock leaped 7.2% to 83.65 on Wednesday, moving back toward its 50-day line. Shares are down 1.7% for the week. On Thursday, Palantir rose 2.2% after plunging just over 10% on Monday, clearly losing sight of its 50-day line. Palantir will hold its sixth artificial intelligence conference on Thursday, touting new AI features and customers at AIPCon.
Notable Bull Cuts His S&P 500 Targets: Trump Isn't 'Bluffing'
Micron, AppLovin Stock
Micron stock ran up 7.4% to 96.64 on Wednesday, just regaining its 50-day line but below its 200-day. MU stock has been rangebound since last July after tumbling from its June peak. Micron earnings are due March 20.
AppLovin stock bounced 5.75% to 272.59 on Wednesday, adding to Tuesday's 8.3% leap. APP stock is up 0.8% for the week, but below moving averages.
What To Do Now
The market is in a correction, with a lot of headline-driven volatility.
Some beaten-down growth plays with high average true ranges are rebounding, such as Tesla and Nvidia, but have a lot of repair to do. Meanwhile, defensive stocks struggled.
It's just not a good time to be significantly invested or making new buys. Investors should be mostly or all in cash.
Keep working on watchlists, and use a pencil not a pen. Focus on relative strength, but it's unclear what will hold up by the time a new uptrend takes hold. A few growth stocks are doing OK.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
