Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were slightly lower ahead of Tuesday's open following Monday's stock market sell-off.
Nvidia stock reversed higher Monday, still closing just below its 50-day moving average line, while the S&P 500 index gave up its own 50-day moving average line for the first time since Dec. 19. The 50-day line is a key level to watch.
Nvidia rose 0.4% Monday, snapping a two-day skid. Shares of the artificial intelligence giant are building a double bottom that offers a 146.54 buy point. Meanwhile, investors could also use a decisive retake of the 50-day line around 140 as an aggressive buy trigger.
Nvidia stock was featured in this week's Stocks Near A Buy Zone column and is a hedged position on IBD Leaderboard.
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Dow Jones Futures Today: Oil Prices, Treasury Yields
On Monday, the Dow Jones Industrial Average declined 1%, while the S&P 500 lost 1.1% and the Nasdaq sold off 1.2%.
The stock market will be closed Wednesday for the New Year's Day holiday.
Ahead of Tuesday's opening bell, Dow Jones futures inched lower vs. fair value, while S&P 500 futures fell 0.1%. Tech-heavy Nasdaq 100 futures dropped 0.2% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield dropped to 4.54%. And oil prices rose modestly, as West Texas Intermediate futures settled around $71.10 a barrel.
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Apple, Meta, Tesla Slide
The Magnificent Seven stocks, excluding Nvidia, all ended squarely lower Monday, as the Roundhill Magnificent Seven ETF slipped 2%. It fell to its lowest close since Dec. 9.
Alphabet declined 0.8%, closing back in buy range above a 182.49 buy point in a cup with handle.
Apple sold off 1.3%, falling sharply for a second straight session. Still, shares are extended past a 237.49 flat-base entry.
Meta Platforms lost 1.4% Monday, still holding above its 50-day line. That's a crucial area to watch for the social media giant. Shares are squarely below a 602.95 buy point.
Microsoft continues to trace a cup with handle that has a 456.16 buy point. But the stock has faltered in recent weeks, to below the 50-day line.
Finally, Tesla skidded 3.3% Monday, extending a losing streak to three sessions. In recent weeks, the Elon Musk-led company topped out at 488.54, about 84% above a 264.86 buy point in a cup with handle. But shares are nearly 15% off that high.
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What To Do Now
Now is an important time to read IBD's The Big Picture column following the session's volatility. After Monday's session, be sure to check out today's updated exposure level.
On Monday's "IBD Live" show, the team discussed the current trading conditions of the stock market action.
Still, investors should be utilizing diligent risk management, one of the four pillars of The IBD Methodology. It's important to monitor positions that are acting out of character and sell any stocks that trigger sell rules.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past buy points. Meanwhile, the MarketSurge "Near Pivot" list shows more stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
