The major stock market indexes all closed higher, but gave back some ground in the final 90 minutes of trading Wednesday. Easing June inflation data gave investors some hope for slowing rate hikes.
The Nasdaq composite jumped nearly 1.2% to close out the trading day. The Dow Jones Industrial Average gained nearly 0.3% and the S&P 500 popped 0.7%. The small-cap Russell 2000 fared better, rising 1.1%.
The Nasdaq 100-tracking Invesco QQQ Trust ETF gained 1.3%. The Innovator IBD 50 ETF rose a more modest 0.4%.
NYSE and Nasdaq volume rose from Tuesday, according to preliminary numbers.
June's lower-than-expected inflation numbers appeared to take pressure off the Fed for more aggressive rate hikes. The June consumer price index rose 0.2% vs. Econoday's consensus 0.3% monthly increase for both overall and core prices. Core prices exclude food and energy.
The year-over-year overall prices rose 3.0% vs. the 3.1% increase expected, while core prices rose 4.8% vs. the 5% forecast.
Thursday, investors get the June producer price index. Producer prices are expected to rise 0.2% compared with a drop of 0.3% in May, according to Econoday. The yearly rise is projected at 0.5%. The June core numbers should increase 0.2% on a 2.8% annual pop.
The CME FedWatch Tool showed over 90% odds for a quarter-point hike at the July 26 Fed meeting, and an over 80% chance of an additional quarter-point rate hike at the September meeting.
The 10-year Treasury yield slid 12 basis points to 3.86%.
Stock Market Action: Energy Storage Deal
Energy storage stock Fluence Energy popped 6.3% on news it partnered with European power grid operator TenneT to build two power grid boosters.
Shares of the IBD 50 stock regained a 26.78 buy point and are in a buy zone reaching to 28.12 despite a sell signal that followed the June 6 breakout. It was the best-performing stock today in the IBD 50 index.
Recursion Pharmaceuticals surged over 78% in huge volume on news that Nvidia invested $50 million in the company. The biotech will use Nvidia's AI technology in its drug development.
Recursion had traded below 10 a share for most of this year, but cleared resistance around 10 Wednesday. Shares of NVDA rallied 3.5%.
Domino's Pizza gapped up 11.1% in heavy volume, after the pizza company announced a deal with Uber Eats for delivery service.
Shares have traded sideways in a range from 300 to 350 in uneven action for several months, not seeing a true base. The pizza stock ws the S&P 500's biggest gainer today.
Shares of Uber Technologies rose 0.4%. The ride-hailing and food delivery service stock is up nearly 20% from a cup base's 37.58 buy point.
Roku trimmed earlier gains and posted a 1.2% increase on top of Tuesday's 11.1% gain, when it broke out. The streaming device company announced a deal with Shopify to allow viewers to purchase items from Shopify on their TVs.
Shares of Roku are in a buy zone reaching to 79.22 from a cup-with-handle base. The stock topped the 75.45 buy point on Tuesday. Note that the handle's depth of 20% is much larger than normal.
SHOP shares jumped 4.4% on the news. The e-commerce business platform stock is extended from the 49.86 buy point of a cup-with-handle base. But shares are now finding support at the 10-week moving average.
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Other Big Movers
Duolingo gapped up 3.1% in heavy volume after yesterday's 7.6% rally. The language-learning app retook its 50-day line on Tuesday.
InMode popped 11% in heavy volume, after the cosmetic surgical systems provider gave Q2 and full-year earnings and sales guidance above analysts' forecasts. Shares broke out of an undefined base with a 41.84 buy point and are above the 5% buy zone, which goes to 43.93.
The relative strength line hit a new 52-week high, as shown by the blue dot, according to MarketSmith pattern recognition.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
