Stock market indexes traded near session highs at Tuesday's closing bell. The Dow Jones Industrial Average gained about 1%.
Fed Chair Jerome Powell is largely expected to tone down the interest rate outlook due to the ongoing bank crisis. The CME FedWatchTool sees an 81.2% chance of a 25-basis-point hike on Wednesday.
GameStop traded sharply higher after-hours, posting a surprising profit of 16 cents per share, vs. expectations for a 13-cent loss. Revenue of $2.23 billion beat $2.18 billion estimates.
Bank leaders Goldman Sachs and JPMorgan Chase led, along with energy giant Chevron Health care and tech stocks lagged. Nike rose ahead of earnings today.
Treasury Secretary Janet Yellen reassured bankers that backstop measures were in place to contain bank run contagion.
Earlier, some regional banks had asked that FDIC guarantees be extended. Smaller banks face a crisis as depositors flee to bigger banks. In 2008, the FDIC extended that guarantee but Dodd-Frank laws now require Congress to pass an authorization. And on Monday, a proposal to increase the FDIC guarantee of $250,000 to deposits of any size hit a roadblock.
The Republican-led House Freedom Caucus said in a statement on Monday that "any universal guarantee on all bank deposits, whether implicit or explicit, enshrines a dangerous precedent that simply encourages future irresponsible behavior to be paid for by those not involved who followed the rules."
Outside Dow Jones: Tesla, Nvidia Rise
The S&P 500 gained 1.3% at 4 p.m. ET. The Nasdaq composite posted 1.6% upside in the last hour. The small-cap Russell 2000 index gained the most, adding 2%.
NYSE volume fell sharply while Nasdaq volume rose, compared to the same time Monday.
Crude oil rose to $69.45 per barrel. The yield on the benchmark 10-year Treasury note ticked up 12 basis points to 3.60%.
First Republic rallied nearly 30% while U.S. Bancorp and KeyCorp both lifted 9%.
Align Technology and Airbnb jumped. Solar stock Enphase added to Monday's hefty gains. Align is the IBD Stock Of The Day.
Tesla rallied 7% to near 198 and rebounded off its 50-day line. The stock got an upgrade from Moody's to Baa3 — the lowest investment grade rating.
Also outside Dow Jones, Nvidia rose after it announced AI supercomputing tools for businesses that access AI through other cloud providers such as Oracle.
Stocks Moving Today
Shares of Google parent Alphabet rose over 3% after the tech giant released its artificial-intelligence app, Bard, to testing in the U.S. and the UK. Bard can give tips for "reaching goals, explain quantum physics or provide outlines for a blog post." The stock is clearing its 200-day line after a recent setback.
Stocks Near Buy Points
| Company | Symbol | Base | Buy Point |
|---|---|---|---|
| Taylor Morrison | (TMHC) | Flat Base | 37.75 |
| Nike | (NKE) | Flat Base | 131.41 |
| Darden | (DRI) | Flat Base | 152.18 |
| Insulet | (PODD) | Double Bottom | 320.10 |
Source: IBD Data As Of March 21
Rival Dow Jones component Microsoft added an image creation tool to its AI-powered Bing and Microsoft Edge.
Users can now see images they ask for in preview mode. The company plans on making the image creator part of Bing chat and Edge's search bar. Shares reversed and notched a small gain in the final hour in a flat base. An entry at 276.86 remains a possibility for now.
Cathie Wood stock Coinbase surged for the seventh day, making its longest winning streak on record Tuesday. Shares are building a cup base with a buy point of 87.73.
Shares of On Holding gapped up in strong volume after earnings. The IBD Leaderboard stock broke out of a cup-with-handle base and 24.21 entry. Canadian Solar also surged after earnings, breaking past its 50-day line. Darden Restaurants broke out of a flat base with a 152.18 entry.
Finally, Dow Jones stock Nike reported earnings that topped estimates after the close, and its stock rose in after-hours trading. NKE rose 2% Tuesday, clearing its 50-day line ahead of earnings.
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