The Dow Jones Industrial Average soared more than 700 points Wednesday as investors celebrated a positive report on inflation. Nvidia rebounded, while Microsoft gave quantum stocks a boost on the stock market today. And Trump Media & Tech gained ground after a big loss Tuesday, while bitcoin rose.
Blue chips on the Dow climbed 1.7%, or 703 points while the S&P 500 surged 1.8%. The Nasdaq composite outperformed as it retook its 50-day moving average and held a hefty 2.5% gain on Wednesday.
Volume ran higher on the New York Stock Exchange and on the Nasdaq compared with the same time on Tuesday. Breadth was positive on the NYSE, with advancers ahead of decliners by roughly 6-to-1. On the Nasdaq advancers beat decliners by more than 3-to-1.
The small-cap Russell 2000 outperformed again and rose 2% following Tuesday's 1.1% gain. But the index's 21-day exponential moving average still lags the 50-day line.
The Innovator IBD 50 exchange traded fund gained more than 3%.
Meanwhile, financial software company SS&C Technologies teased a buy point of 77.69 in active trading before surpassing it with a gain of nearly 2%.
Also, Taiwan Semiconductor will report earnings on Thursday. Analysts estimate a 33% increase in sales to $26.2 billion with earnings of $2.20 per share, a 51% increase from the prior year. Shares are hovering above the 50-day moving average and in a buy zone above a 205.63 buy point.
3:25 p.m. ET
Inflation Report Boosts Stocks
Boosting the market was renewed hopes of a rate cut in June, which surged after the consumer price index trended lower in December. Although headline inflation rose 0.4% vs. estimates of 0.3%, core inflation cooled.
According to the CME FedWatch Tool, odds of a 25-basis-point cut in the summer sit at 44.6%, higher than odds for no change from current target rates. The yield on the benchmark 10-year Treasury note dropped 13 basis points to 4.65%.
Also Wednesday, New York Fed President John Williams noted in prepared remarks at the 2025 CBIA Economic Summit and Outlook that while "disinflation will progress, it will take time, and the process may well be choppy."
The Fed's Beige Book noted that economic activity increased "slightly to moderately" in late November and December in the Federal Reserve's 12 districts due to strong holiday spending. Manufacturing and construction decreased but leisure services grew slightly.
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Elsewhere, issues on the IBD 50 list of leading stocks that were on the move include Robinhood Markets, Rocket Lab, Intuitive Machines, Reddit and Argan, which is on Investor's Business Daily's Leaderboard model portfolio watchlist.
1:31 p.m. ET
Trump Stock Gains Back Ground
Also, Trump Media & Tech gained nearly 4% Wednesday. Shares of the social media firm owned by President-elect Donald had fallen 8% on Tuesday.
And after retreating for several days, bitcoin rose above $99,500. The cryptocurrency was approaching the $100,000 level on Wednesday.
12:28 p.m. ET
Breakouts Highlight Stock Market Today
A number of breakouts highlighted Wednesday's stock market.
Intuitive Surgical broke out from a flat base's buy point of 556.23 in heavy trading after fourth-quarter results beat estimates. The buy zone goes to 584.04. SAP cleared 256.13, its buy point from a flat base. The relative strength line also made new highs on both charts — a bullish combination.
SemTech rose above a 70.27 entry from a flat base.
Aerospace supplier Howmet broke out from a 120.71 entry in more than double its average volume. The buy zone goes to 126.75 and its RS line is also at new highs. Howmet was Tuesday's IBD Stock Of The Day.
10:47 a.m. ET
Stock Market Today: Dow Jones Gets Boost From Nvidia
All components in the Dow Jones gained, with the exception of UnitedHealth.
Nvidia rebounded as it attempted to break a five-day losing streak. Shares remained below the 50-day moving average. The stock suffered a sell signal earlier this week.
Bank earnings moved several of those stocks. JPMorgan Chase beat views with revenue of $42.77 billion and earnings of $4.81 per share. Analysts polled by FactSet had pegged $4.09 a share on $41.9 billion in revenue. Shares broke out from a cup-with-handle base's buy point of 245.69 on Tuesday and added 1%, keeping the stock in a buy zone to 257.97.
Goldman Sachs' performance was impressive after the Dow component turned out $13.87 billion in revenue and earnings of $11.95 per share. Estimates had called for $12.4 billion in revenue with per-share earnings of $8.21. Shares cleared the 50-day moving average as they work on a flat base with a buy point of 612.73.
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Wells Fargo, Citigroup and BlackRock also rose after their earnings reports. Wells Fargo also retook the 50-day moving average as it continues to trade in a flat base with a buy point of 78.13.
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In health care, sports medicine biotech Vericel fell after fourth-quarter guidance disappointed. It is still forming a flat base.
Quantum Stocks Get Microsoft Boost
Quantum stocks got a boost after Dow Jones component Microsoft launched Quantum Ready, a new program from its Azure cloud computing business.
IonQ and D-Wave Quantum soared as D-Wave announced a partnership aimed at increasing government adoption of its quantum computing technology.
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