Dow Jones futures edged lower overnight, while S&P 500 futures and Nasdaq futures fell slightly. NVDA stock fell overnight on a report that the U.S. could expand chip export restrictions.
X
The stock market rally had strong gains Tuesday after a mixed session Monday. The Nasdaq and S&P 500 rebounded from near their 21-day exponential moving averages, along with megacaps Tesla (TSLA) and Nvidia (NVDA). Overall market breadth was strong.
United Airlines (UAL), American Airlines (AAL), FedEx (FDX), Amkor Technology (AMKR) and On Holding (ONON) all cleared buy points.
Tesla, On Holding and Nvidia stock are on IBD Leaderboard, while UAL stock is on the Leaderboard watchlist. United Airlines and ONON stock are on the IBD 50. Tesla stock is on the IBD Big Cap 20. United Airlines was Tuesday’s IBD Stock Of The Day.
Is the market pullback over or is this just a one-day blip? That’s a big question. Investors can be taking advantage of buying opportunities, carefully, but ready to step back if positions or the broader market retreat again.
The video embedded in this article discussed Tuesday’s strong market rally and analyzed FDX stock, United Airlines and Datadog (DDOG).
U.S. Mulls AI Chip Export Curbs
The Biden administration is considering new restrictions on exports of artificial intelligence chips, The Wall Street Journal reported Tuesday night, citing sources.
The Commerce Department could halt AI chip shipments by Nvidia and others to China and other countries of concern without first obtaining a license.
Nvidia stock fell 3% in extended trade. Advanced Micro Devices (AMD) sank more than 2%. Broadcom (AVGO) dipped 1%.
In addition to possible lost business for Nvidia, AMD and others, expanded chip exports could spur China retaliation. Beijing has already limited sales of Micron Technology (MU) chips to key customers, citing cybersecurity concerns. Micron, which reports Wednesday night, edged lower overnight.
In other news, Spirit AeroSystems (SPR) late Tuesday reached a tentative deal with striking workers. Spirit Aero makes 737 fuselages for Boeing (BA). SPR stock rose slightly in late trading. BA stock edged higher.
Dow Jones Futures Today
Dow Jones futures were just below fair value, even with Boeing stock offering a tiny boost. S&P 500 futures declined 0.2% and Nasdaq 100 futures fell 0.4%. Nvidia and AMD stock are notable S&P 500 and Nasdaq 100 components.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally enjoyed a strong, broad-based advance. Economic data was upbeat, with May new-home sales crushing views while June reports on consumer confidence and Richmond-area manufacturing also topped.
The Dow Jones Industrial Average rose 0.6% in Tuesday’s stock market trading. The S&P 500 index climbed 1.1%. The Nasdaq composite jumped 1.65%. The small-cap Russell 2000 leapt 1.5%.
U.S. crude oil prices fell 2.4% to $67.70 a barrel.
The 10-year Treasury yield popped 5 basis points to 3.77%, holding within a range going back to late May.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) popped 2.6%, while the Innovator IBD Breakout Opportunities ETF (BOUT) gained 2.5%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed nearly 2%.
The VanEck Vectors Semiconductor ETF (SMH) jumped 3.2%. NVDA stock, the top SMH holding, rose 3.1%, bouncing from near the 21-day line. But it was an inside day after slumping 3.7% on Monday.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) leapt 3.4% and ARK Genomics ETF (ARKG) edged up 0.7%. Tesla stock is the No. 1 component across Ark Invest’s ETFs. The EV giant ran up 3.8% to 250.21 on Tuesday, bouncing from the 21-day line but after tumbling 6.1% on Monday. TSLA stock arguably has a 274.75 handle buy point on a consolidation going back to September.
SPDR S&P Metals & Mining ETF (XME) climbed 1.3% and the Global X U.S. Infrastructure Development ETF (PAVE) 1.7%. U.S. Global Jets ETF (JETS) flew 4.4%, with UAL stock and American Airlines big parts of the ETF. SPDR S&P Homebuilders ETF (XHB) stepped up 2.9%. The Energy Select SPDR ETF (XLE) edged up 0.2% and the Health Care Select Sector SPDR Fund (XLV) dipped 0.2%.
The Industrial Select Sector SPDR Fund (XLI) climbed 1.2%.
The Financial Select SPDR ETF (XLF) advanced 0.8%. The SPDR S&P Regional Banking ETF (KRE) rebounded 3.2%.
Five Best Chinese Stocks To Watch Now
Stocks In Buy Zones
UAL stock jumped 5.1% to 56.03, clearing a 54.05 cup-with-handle buy point. AAL stock leapt 5.5% to 17.35, flying above a 16.72 entry from its own cup with handle, according to
Read More: Dow Jones Futures: Market Rallies Bullishly, But Nvidia Falls Late On AI Chip