Early trepidation gave way to a positive stock market reaction as President Donald Trump announced exceptions for automakers on his tariff plans Wednesday. The Dow Jones Industrial Average charged higher in afternoon trades Wednesday and was joined by the two other major indexes, and all three broke a two-day losing streak. The move also gave a lift to several sectors on the stock market today.
Dow stocks jumped nearly 500 points, or 1.1%, at the closing bell. Dow component Nvidia rose more than 1% after Tuesday's rebound but continues to trade below its 200-day moving average. Its Relative Strength Rating has fallen to 62.
The S&P 500 also managed a 1.1% gain. All S&P sectors gained except energy and utilities.
The Nasdaq composite took the lead among the major indexes and finished 1.5% higher. Amazon.com, which found support at its 200-day line Tuesday, added to early gains and rose 2.2%.
As the major exchanges improved, the small-cap Russell 2000 ended the trading day with a 1% gain. And the Innovator IBD 50 ETF climbed 2.4%.
Volume on the New York Stock Exchange and the Nasdaq was lower compared with the same time on Tuesday. Breadth improved from midday trades, with advancers outnumbering decliners by roughly 2-to-1 on both exchanges.
The yield on the benchmark 10-year Treasury note climbed eight basis points to 4.29%.
2:51 p.m. ET
Stock Market Today: Trump Delays Tariffs For Automakers
On Wednesday, the White House stated that it was granting a one-month exemption for "any autos coming through USMCA." USMCA is the United States-Mexico-Canada Agreement trade deal that President Trump negotiated during his first term. Reciprocal tariffs will still go into effect on April 2.
Late Tuesday, Trump addressed Congress and maintained a firm stance on tariffs on Canada, Mexico and China. He also noted that tariffs would cause some economic disturbance.
In economic news, the Fed's Beige Book noted flat to slightly negative growth in all 12 districts in February.
And in stocks, AeroVironment plunged to October 2023 lows at one point after it reported earnings. Sales declined 10% to $167.6 million while earnings per share of 32 cents dropped 52%. It was the defense company's fourth straight decline in earnings.
12:21 p.m. ET
Dow Jones: Nvidia Stock Wavers
Nvidia headed higher after Tuesday's 1.7% gain. The stock remains below its 200-day moving average and undercut its Jan. 31 low on Tuesday.
Shares are rising as artificial-intelligence chip maker Marvell Technology was due to report earnings later Wednesday. Broadcom is set to report Thursday. Both Marvell and Broadcom compete with Nvidia.
Caterpillar, 3M and Sherwin-Williams led, while Apple and Chevron lagged. Apple is forming a cup-with-handle base.
10:47 a.m. ET
Employment Report Falls Short
The ADP employment report for February missed the consensus estimate of 162,000 and fell to 77,000 from January's 183,000 job gains.
Elsewhere, the Purchasing Managers' Index for February fell to 51.6 after January's 52.7 and vs. views of 50.4. And the Institute of Supply Management Services Index for February rose to 53.5. Economists had estimated a reading of 52.7.
Stock Market Today: CrowdStrike Triggers Sell Signals
CrowdStrike beat estimates for its fourth quarter. Sales of $1.06 billion and earnings of $1.03 per share beat views of 86 cents in earnings per share on sales of $1.04 billion.
But net new annual recurring revenue fell 20% to $224.3 million. The cybersecurity company also predicted earnings of $3.39 per share at the midpoint for 2026, below views. Analysts polled by FactSet had its estimates at $4.40 per share.
Shares triggered sell signals as they undercut the 50-day moving average in heavy volume. The stock is also round tripping a 17% gain from that buy point.
Credo Technology fell 14% after earnings were announced. Sales grew 154% to $135 million while earnings of 25 cents per share rose 525% from the prior year.
The connectivity products maker for data transfers gave a fourth-quarter sales outlook of $160 million at the midpoint, above views of $146.8 million. Still, shares fell further below the 50-day line and tested the 200-day moving average.
Box reported revenue of $280 million for its February-ended quarter. But earnings of 42 cents per share showed no growth from the prior year. Shares had been forming a cup with handle base with a buy point of 35.45 but fell below their 50-day moving average on Wednesday in heavy volume, which triggered a sell signal.
Stocks Rally On Auto Tariffs Delay; AI Chip Play Dives Late
Retail Players Report Earnings
Some retail earnings included Foot Locker, Ross Stores and Abercrombie & Fitch.
Foot Locker trimmed gains to a little more than 5%. Ross reversed higher as it erased an early loss of 5%. But Abercrombie plunged nearly 10%. All three are in a downtrend and remain well below their downward-sloping 50-day moving averages.
China stocks rose after reports that the Chinese government had set a hefty 5% growth target for 2025. Alibaba broke a four-day losing streak with a gain of more than 8%. JD.com and Baidu each surged more than 5%. JD.com is in a cup with handle with a buy point of 43.63.
The iShares MSCI China exchange traded fund rose more than 4%. The iShares Large Cap China ETF gained 5%. The latter ETF joined the IBD Leaderboard on Wednesday.
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