The Dow Jones Industrial Average and other major indexes surrendered some gains but managed to stay solidly in positive territory Monday ahead of this week's Federal Reserve meeting. Netflix gained, but Tesla and Nvidia fell as the Magnificent Seven traded mixed on the stock market today. Meanwhile, Warren Buffett loaded up on some Berkshire Hathaway positions.
Stocks managed to build on Friday's rebound, a positive sign. The Dow industrials ended the day 350 points higher, or 0.9%. Walmart outperformed as it popped 2.5%. Goldman Sachs and IBM were also strong, with each up nearly 2%.
The Nasdaq composite reversed higher and ended the day up 0.3%. The tech-heavy index remains down more than 7% so far this year. Lululemon Athletica impressed here as it climbed more than 5%. Fallen leader AppLovin surged close to 5%. Still, it remains more than 40% off recent highs.
Stock Market Today: Energy, Small Caps Shine
The benchmark S&P 500 rose 0.7% and gained ground on its 200-day moving average. S&P 500 sectors were mostly positive on the stock market today. Energy and real estate fared best while consumer discretionary made the smallest gain.
Intel was a standout as it leaped close to 7%. Enphase Energy outpaced Intel, though, as it jumped nearly 10%.
Small caps were just off highs on the stock market today. The Russell 2000 index moved up 1.2% but remains well below its 200-day moving average.
Growth stocks fared even better, with the Innovator IBD 50 exchange traded fund up 2%. Still, the fund remains down nearly 3% in 2025.
Volume was higher on the New York Stock Exchange but lower on the Nasdaq compared to Friday, according to preliminary data.
Fed Meeting Looms
Stocks were in rally mode just a day ahead of the latest Federal Open Market Committee meeting, which starts Tuesday and concludes Wednesday.
Economists believe there is a 99% certainty that the Federal Reserve will hold rates steady at the next meeting, according to the CME FedWatch tool. However, post-meeting comments from Fed Chairman Jerome Powell could give more insights into the future path of monetary policy. His speeches tend to be market-moving events.
B. Riley Wealth chief market strategist Art Hogan also thinks that the Fed will keep rates steady. He also believes it will adjust its Summary of Economic Projections to anticipate slower growth at or near 2%.
"Because of inflation remaining at least 50 basis points above target, policymakers are well aware of the importance of keeping inflation expectations well anchored amid what will be a volatile financial market environment," he said in a Monday note to clients.
"We anticipate that the Fed's policy statement will include an update to the language in the text around moderating growth and labor demand," Hogan went on to say. "The Federal Open Market Committee will restate that risks to its employment and inflation objectives are roughly balanced. Beyond that, there should be little change to the policy statement."
3:22 p.m. ET
Warren Buffett Raises These Positions
One investor known for playing four-dimensional chess is Berkshire Hathaway Chief Executive Warren Buffett. And it was reported Monday that he added to some winning positions as he ramped up exposure to some Japanese trading firms.
New regulatory filings in Japan showed Berkshire has raised its holdings in Itochu, Sumitomo, Marubeni, Mitsubishi and Mitsui. Each of these companies are trading houses.
The Oracle of Omaha has been a longtime backer of the highly developed Asian economy. Berkshire started building positions in the stocks back in July 2019.
Berkshire Hathaway stock itself has been doing well so far in 2025, rising around 15% this year. Its IBD Composite Rating of 94 out of 99 reflects excellent all-around performance. Shares gained more than 1% on the stock market today and are extended past a 491.67 cup base entry. A buy point of 518.77 could be used as an alternate by aggressive investors.
Magnificent Seven Mixed As Tesla, Nvidia Lag
The so-called Magnificent Seven started to perform better Monday afternoon amid the broader positive action. However, electric-vehicle play Tesla remained one of the worst laggards on both the Nasdaq and the S&P 500 as it fell more than 4%.
The Elon Musk-led company sits below its major moving averages and is down more than 40% year to date, according to MarketSurge data.
Tesla stock got hit after Mizuho slashed its price target from 515 to 430 per share even as it reiterated an outperform rating. The firm cited softening sales.
And while the broader semiconductor space was moving higher, artificial intelligence stock Nvidia headed in the opposite direction. It came off lows for the day but still lost more than 1%. While it is below its major moving averages, its 50-day line is holding above the 200-day for now.
Meta Platforms, Amazon.com and Google-parent Alphabet also underperformed the broader market with nominal declines.
The rest of the ostensibly elite group of stocks were gaining ground. Apple reversed higher, as did software giant Microsoft. But Microsoft remains below all its moving averages, with the 50-day line now trading below its 200-day line.
1:55 p.m. ET
Stock Market Today: More Stocks Clear Buy Points
The plethora of breakouts on the stock market today is a positive sign. Here are a few other issues that tested entries.
Diversified insurance play Hartford Insurance is in a buy zone above a cup-with-handle ideal entry point of 120.15
Its IBD Composite Rating of 93 out of 99 reflects strong performance. However, its EPS Rating of 78 out of 99 is not ideal.
Fellow insurer W.R. Berkley is flirting with an early-stage cup-with-handle buy point of 63.98. The commercial lines property and casualty insurance stock has seen its relative strength line hit fresh highs, a bullish sign.
Both earnings and stock market performance are strong for the Greenwich, Conn.-based firm. It has risen more than 9% so far this year.
Affirm Stock Battered After Walmart Move
But it was not all sunshine and rainbows for investors Monday. Indeed, Affirm was getting a harsh spanking from the bears on the stock market today.
While it was off session lows, the "buy now, pay later" specialist remained down. Affirm stock has lost around a quarter of its value so far in 2025.
The stock flashed a sell signal by diving below its 200-day moving average in heavy volume. It remained below the benchmark even as it tried to rally back.
It was diving on the news that Walmart is replacing Affirm with Swedish company Klarna as its exclusive provider in the U.S. of "buy now, pay later" services. This is big news for privately held Klarna as it eyes a potential initial public offering.
However, it is a big blow for Affirm as purchases made through the Walmart program accounted for 5% of its gross merchandise volume in the second half of 2024.
12:30 p.m. ET
Stock Market Today: China Equity Among Breakouts
A number of stocks cleared potential buy points Monday, though current market conditions mean caution is advised. Buying smaller pilot positions is one way to take advantage while minimizing potential losses.
Chinese stocks have been strong of late, and one equity managed to clear pivot points. Yum China is in a buy zone above a consolidation entry of 52. This is a first-stage pattern, a bonus. In addition, the Relative Strength Rating has just hit a fresh high, another bullish signal.
Overall performance is strong, netting it an IBD Composite Rating of 95 out of 99. The firm operates brands including KFC, Pizza Hut and Taco Bell. It is the communist nation's biggest restaurant company.
Financial services play Tradeweb Markets has cleared a cup-with-handle base buy point of 140.48. Tradeweb stock has a near-ideal IBD Composite Rating of 98.
Earnings performance is a key strength. Per-share earnings have grown by an average 30% over the past three quarters. Wall Street see further progress ahead, with per-share earnings expected to rise 17% this year and a further 13% in 2026.
Insurance stock EverQuote is actionable after it cleared a cup-with-handle entry of 26.99. The stock is among the top 4% of issues in terms of price performance over the past 12 months. Earnings are expected to pop 36% in 2025 before slowing to 9% growth next year.
10:52 a.m. ET
Retail Sales Data Weaker Than Expected
Stocks moved higher after the Commerce Department reported that retail sales rose an adjusted 0.2% in February compared with January.
This was below the 0.6% reading expected by economists. However, it also came in better than the prior month's downwardly revised decline of 1.2%.
Excluding autos, sales rose 0.3% and met expectations. In addition, the so-called control group, which strips out noncore sectors, was up 1%, which was better than expected. Softer retail activity will help soothe worries over inflation.
Bessent Speaks Out On Recession, Corrections
The market was also digesting more comments from Treasury Secretary Bessent over the weekend.
He told NBC that "corrections are healthy. They're normal," though investors remained worried about current market conditions. Still, Bessent warned how "euphoric markets" can lead to a "financial crisis," citing 2008.
The Trump administration economic policy point man also refused to rule out a recession, saying "there are no guarantees."
But there was a sliver of comfort for investors to take from the former hedge fund manager during the "Meet the Press" interview.
"Over the long term, if we put good tax policy in place, deregulation, and energy security, the markets will do great," Bessent said.
Stock Market Today: Netflix Pops, Retakes Key Benchmark
Streaming play Netflix made gains following an analyst upgrade. The stock got a boost after MoffettNathanson raised it to a buy rating from neutral. It also upped its price target on the company to 1,100 from 850.
Analyst Robert Fishman believes the firm will be able to better monetize its user base going forward, which will "unlock greater profits in the years ahead."
Netflix stock rose nearly 4% on the stock market today, and was one of the best performers on the S&P 500 as well as the Nasdaq. The stock has surged back above its 50-day moving average in high volume, MarketSurge analysis shows
While this could be used as an early entry for aggressive investors, current market conditions would make this a risky time to buy. Both earnings and price performance are excellent though, which is reflected in its best-possible IBD Composite Rating of 99.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
