Major indexes picked up steam in morning action on the stock market today, as investors found hope in Federal Reserve Chairman Jerome Powell’s comments Wednesday regarding interest rate cuts.
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Prepared comments from Powell for the House Financial Services Committee said it was too soon for rate cuts, but added they are likely “at some point” this year. He indicated there’s a sweet spot between cutting rates too soon and too much, and waiting too long to ease policy. He said waiting too long “could unduly weaken economic activity and employment.”
Powell was speaking before the House panel Wednesday. He also is due to speak before the Senate Banking Committee on Thursday. Markets now expect Fed rate cuts to begin in June, with a 54.9% probability, according to the CME FedWatch Tool.
In other economic news, the February Automated Data Processing employment report showed an increase of 140,000 private jobs on payrolls vs. the 150,000 consensus, and much higher than January’s revised 111,000 additions.
The Labor Department’s January Job Openings and Labor Turnover Survey, or JOLTS, came in lower than expected at 8.863 million job openings vs. the 8.9 million forecast. It was slightly below December’s revised 8.889 million.
Stock Market Today: Indexes Approve Of Powell’s Comments
The Nasdaq rebounded to gain 0.8% in Wednesday’s action. Meanwhile, the Dow gained 0.5%, while the S&P 500 added 0.7%. The small-cap Russell 2000 climbed 0.8%.
Volume rose on the New York Stock Exchange and fell on the Nasdaq compared with the same time on Tuesday.
The Invesco QQQ Trust (QQQ) exchange traded fund rose 0.6%. The Innovator IBD 50 ETF (FFTY) outperformed the major indexes and climbed 2% on the stock market today.
The 10-year Treasury yield shed 3 basis points to 4.11%. West Texas Intermediate Crude jumped 2.8% to more than $80.35 a barrel.
Bitcoin’s price stood just past $66,000 in recent trades. Crypto-related stocks such as MicroStrategy (MSTR), Coinbase (COIN) and Marathon Digital (MARA) all climbed Wednesday morning.
Big Stock Movers: CrowdStrike Hits A High
IBD 50 name CrowdStrike (CRWD) gapped up around 15% in heavy volume after the cybersecurity firm topped its January-ended quarter earnings and sales estimates. It also gave a fiscal 2025 revenue outlook that was above analyst projections.
The jump comes following Tuesday’s 5.2% drop that tested its 50-day moving average. The stock is on track for its largest one-day increase since March 20, 2020, when it rose 17.42%, according to Dow Jones Market Data. CrowdStrike reached an all-time high Wednesday.
Couchbase (BASE) gapped up but was off morning highs, following the database software company’s smaller-than-expected fiscal fourth-quarter loss and higher revenue. The stock is extended from a 24.61 alternate entry and hit a 52-week high on Wednesday.
Palantir Technologies (PLTR) jumped more than 7% after the data analytics software maker announced it won a $178 million U.S. Army contract for Project Titan, a battlefield system using artificial intelligence. Palantir stock also reached a 52-week high on the stock market today.
Enterprise software stock Box (BOX) gained more than 6% after the company beat its fiscal-fourth quarter earnings estimates but slightly missed revenue views. The stock is in a long, undefined base with a 30.94 buy point.
Stock Market Movers: Retailers Pull Back
Ross Stores (ROST) dipped even though the off-price retailer topped fourth-quarter estimates and announced a $2.1 billion stock buyback. It also raised its quarterly dividend 10%. The stock is off its 52-week high reached on Tuesday and tested its 21-day exponential moving average.
Abercrombie & Fitch (ANF) sank more than 2% even after the apparel retailer exceeded fourth-quarter earnings and sales expectations. Shares have had an incredible run that started around August 2023.
Dow Jones component Apple (APPL) inched 0.3% lower, adding to a five-day sell-off.
Meanwhile, Tesla (TSLA) fell more than 2%, adding to its two-day drop on the stock market today. The electric vehicle giant is having its worst three-day stretch since the three days ending Oct. 20, 2023, when it fell 16.82%, according to Dow Jones.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
