Dow Jones futures rose early Wednesday, along with S&P 500 futures and especially Nasdaq futures.
Artificial intelligence stocks rallied as President Donald Trump announced a $500 billion joint venture by Oracle, OpenAI and SoftBank. Oracle stock surged in extended trade, signaling at least an early entry. Nvidia stock, Palantir and some other AI plays also advanced.
Netflix surged on strong earnings while United Airlines and Interactive Brokers rose on results.
But Trump also said he's mulling a 10% China tariff as early as Feb. 1. On Monday, Trump said he was considering 25% tariffs on Canada and Mexico starting Feb. 1.
The stock market rally rose solidly Tuesday after a three-day weekend and Trump's inauguration. The Dow Jones moved above the 50-day line, joining the S&P 500 and Nasdaq.
Apple continues to sell off. Tesla edged lower Tuesday, but showed constructive action. Nvidia rallied back above resistance. Amazon.com and Google parent Alphabet are in buy range.
Speculative heat plays soared, including Rocket Lab, Intuitive Machines, Oklo, IonQ and Rigetti Computing. All rallied on President Trump's day one comments or executive orders.
The video embedded in the article reviewed Tuesday's market action and analyzed Rubrik, DoorDash and SkyWest.
Dow Jones Futures Today
Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures rose 0.55%. Nasdaq 100 futures jumped 1%, buoyed by Netflix, United Airlines, Nvidia, Palantir and more.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Earnings
Netflix earnings and subscribers beat Q4 views with the company also planning monthly fee hikes. NFLX stock surged 15% in overnight action, signaling a breakout from a 941.75 flat-base buy point. Shares rose 1.35% to 869.68 on Tuesday.
United Airlines stock climbed solidly in extended trade on strong earnings and guidance. UAL stock rose 2.9% to 110.52 on Tuesday, a record close. Shares are extended.
Interactive Brokers stock rose solidly overnight, signaling a breakout, as earnings exceeded consensus. Shares advanced 1.35% to 192.66 on Tuesday after briefly topping a 193.41 cup-with-handle buy point.
GE Vernova reported weaker-than-expected Q4 revenue amid tumbling wind orders. But GEV stock rose slightly before the open after rising 3.6% Tuesday to yet another new high.
'Stargate' AI Investment
On his second day back in the White House. Trump announced the "Stargate" venture by Oracle, OpenAI and SoftBank to build data centers and other artificial intelligence infrastructure in the U.S. The venture will reach at least $100 billion and possibly reach $500 billion eventually.
The announcement came after the market close, but news that it was coming helped lift AI infrastructure stocks during the regular session.
Oracle stock spiked 11% in premarket trade above 190, signaling a gap well above its 50-day line after jumping 7.2% in Tuesday's session. That would offer an early entry in a new base with a 198.31 buy point.
Nvidia and Microsoft also are expected to participate.
Nvidia climbed 3%. Microsoft stock was up more than 1% in extended action. Arista Networks popped 4%. Palantir stock, Broadcom and Marvell Technology gained as well.
Stock Market Rally
The stock market rally had another solid, bullish session for the key indexes and leading stocks.,
The Dow Jones Industrial Average leaped 1.2% in Tuesday's stock market trading, back above the 50-day moving average. The S&P 500 index climbed 0.9%, clearing the 6,000 level. The Nasdaq composite rose 0.6%. The small-cap Russell 2000 jumped 1.85%, getting close to the 50-day line.
The Invesco S&P 500 Equal Weight ETF reclaimed the 50-day line, up 1.2%. The First Trust Nasdaq 100 Equal Weighted Index ETF, which retook that key level Friday, added 0.7%.
Leading stocks from a variety of sectors flashed buy signals or extended recent moves. Rubrik stock, DoorDash, SkyWest, Pure Storage and Tesla rival BYD.
Speculative plays took their cues from Trump. Space stocks like Rocket Lab surged on his call for astronauts on Mars. Oklo stock and other speculative nuclear plays ramped up as Trump declared an energy emergency. Quantum computing stocks such as IonQ spiked as the new president eased AI regulations.
U.S. crude oil prices retreated 2.6% to $75.89 a barrel.
The 10-year Treasury yield fell four basis points to 4.57%, continuing a big retreat from 52-week highs.
Bitcoin rose to 2.5% to $106,126.17 as of 4 p.m. ET as the Trump administration launched a new "crypto task force." The cryptocurrency hit a record high above $109,000 over the weekend.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF climbed 3.3%. The iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF advanced 1.6%. Nvidia stock is a dominant component.
ARK Innovation ETF rose 3.2% and ARK Genomics ETF surged 7.9%. Tesla stock is a major holding across Ark Invest's ETFs. Cathie Wood also owns stakes in Nvidia, Pure Storage, Rubrik, Oklo and BYD.
SPDR S&P Metals & Mining ETF gained 1.5%. U.S. Global Jets ETF ascended 2.4%, with United Airlines stock the No. 1 holding and SkyWest also in the ETF. The Energy Select SPDR ETF fell 0.5% and the Health Care Select Sector SPDR Fund advanced 1.7%.
The Industrial Select Sector SPDR Fund added 2.05% and The Financial Select SPDR ETF climbed 0.8%.
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Apple Stock Slumps, Other Titans Fine
Apple stock fell 3.2% to 222.64, a four-month low and near the 200-day line amid ongoing iPhone China concerns.
Tesla stock dipped 0.6% to 424.07, but bounced off the 21-day line and near its 10-week average. The EV giant is close to forging a new base.
Nvidia stock gained 2.3% to 140.84, back above its 50-day line. But there isn't a clear NVDA buy point.
Amazon stock advanced 2.1% to 230.71, nearing the top of a flat base after flashing an early entry Friday.
Google stock gained 1.05% to 198.05, briefly hitting a record high and clearing a five-weeks-tight entry. Shares did set a record close.
Apple, Tesla and Amazon report earnings next week with Google the following week.
What To Do Now
The major indexes and equal-weight ETFs are above their 50-day moving averages, with small caps close. Leading stocks are flashing buy signals and following through.
The stock market rally is showing strength and offering chances over the past several days to get on board.
Investors should add keep adding exposure gradually as the market continues to improve. If the rally has legs, you'll be nearly fully invested for most of the run. If the market quickly falters, your losses will be limited.
Keep working on watchlists, paying attention to key earnings upcoming for your portfolio.
Nvidia stock is on IBD Leaderboard, along with Google and DoorDash stock. Tesla stock is on the Leaderboard watchlist. United Airlines stock is on SwingTrader. Rocket Lab stock, Intuitive Machines and Interactive Brokers are on the IBD 50. SkyWest was Tuesday's IBD Stock Of The Day.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
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