The Dow Jones Industrial Average traded off intraday lows on Thursday but closed far lower, falling over 1,200 points as investors digested the Federal Reserve's latest monetary policy decision.
Dow Jones Today
After announcing a widely expected half-point interest rate increase on Wednesday, the market rallied across the board. But the gains were short-lived as the markets absorbed the future impacts of a higher-rate environment.
At the close, the Dow Jones industrials were down 3.1%. The Nasdaq sank 5% as the S&P 500 declined 3.6%. The small-cap Russell 2000 lost 4.2%. According to early data, volume was higher on the Nasdaq and on the NYSE vs. the close on Wednesday. This is bearish action as it indicates institutional investors are selling heavily. Elsewhere, the yield on the 10-year Treasury note leapt to 3.06% Thursday afternoon.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32766.72 | -1294.34 | -3.80 |
| S&P 500 | (0S&P5) | 4115.64 | -184.53 | -4.29 |
| Nasdaq | (0NDQC ) | 12211.22 | -753.64 | -5.81 |
| Russell 2000 | 183.71 | -9.81 | -5.07 | |
| IBD 50 | 31.98 | -1.24 | -3.73 | |
Last Update: 3:30 PM ET 5/5/2022 |
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As for Dow Jones stocks, all 30 components were lower. Salesforce.com and Nike led with losses of 6.8% and 5.9%, respectively. Both stocks remain in downtrends and are below their 21-day and 50-day lines. Healthcare stock Amgen fared best with a loss of around 0.7%.
Stocks Still Manage Breakouts Amid Sell-Off
The Innovator IBD 50 ETF, a benchmark for growth stocks, fell 3.3%. Meanwhile, three leading stocks in the MarketSmith Growth 250 index scored breakouts. But each faded from their buy points in afternoon trading.
Shares of Silicon Motion Technology rose nearly 17%, gapping higher on news that MaxLinear, a maker of chips for broadband communications, agreed to acquire the company. SIMO stock traded above the 96.99 buy point briefly before fading gains. The MarketSmith chart shows a blue dot on the relative strength line, which indicates the RS line has hit a new high. This is a bullish sign alongside the breakout.
Personal cosmetics stock European Wax Center also broke out, topping a 31.11 buy point. The firm also reported earnings on Wednesday, which propelled the stock into its buy range. Shares held a gain of 3.7% in afternoon trading.
Finally, industrial construction supplies distributer Wesco International broke out from a 141.02 base. Shares traded higher in heavy volume after the firm reported earnings early Thursday. EPS rose 154% year over year while sales jumped 22%
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
