The Dow Jones Industrial Average rallied more than 250 points, while tech stock reversed higher Wednesday, as Bitcoin rebounded. Tesla stock looked to recover from Tuesday’s sell-off, while Square dived on weak sales results. Nvidia earnings are due out after the close.
Tesla (TSLA) rallied nearly 5% in morning trade Wednesday, looking to rebound from Tuesday’s 2.2% fall. Square (SQ) dived on earnings results after the stock market close Tuesday. Nvidia (NVDA) will report earnings after the close.
Apple, Microsoft and Tesla are IBD Leaderboard stocks.
Dow Jones Today
On Wednesday, the Dow Jones Industrial Average rose 0.8%, while the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite reversed 0.4% higher in midday trade.
U.S. Stock Market Today Overview
Last Update: 10:38 AM ET 2/24/2021
Stock Market Rally
Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the middle of February has the Dow Jones Industrial Average, Nasdaq and S&P 500 pulling back from record highs.
Tuesday’s Big Picture commented, “Indexes closed in decent shape after the Nasdaq composite plunged nearly 4% in early trading. The Nasdaq — feeling the brunt of a sell-off in technology shares — closed 0.5% lower. That’s an impressive rebound, especially at the chart levels where it happened.”
Focus on stocks that show strong relative strength during the current weakness. They could be some of the market’s leaders if the indexes are able to get back to their record-setting ways.
Bitcoin Price Rebounds
Bitcoin rebounded about 4% Wednesday morning, briefly rising back above $51,000 before paring gains. The price of Bitcoin traded around $49,300 in morning trade, according to CoinDesk.
The price of Bitcoin topped $57,000 on Saturday and $58,000 on Sunday, eventually topping out at $58,332. On Tuesday, Bitcoin plunged below $45,000 before recovering.
The Grayscale Bitcoin Trust (GBTC) ETF rallied almost 3%, looking to snap a two-day losing streak.
Dow Jones Stocks: Disney
Disney stock moved up 0.4% Wednesday, on pace to extend a three-day win streak that carried the stock out of buy range.
Stock Market Earnings: Square
Top payments stock Square reported strong Q4 earnings results, but revenue and gross payment volume missed analyst targets. The company also disclosed a new $170 million investment in Bitcoin on top of its earlier $50 million purchase.
Square stock dived 8% early Wednesday, on pace to extend a losing streak to three sessions. Shares are still holding above their 50-day support level.
Nvidia earnings are due out after the stock market close Wednesday. Analysts expect the company to earn $2.81 per share on sales of $4.8 billion, according to IBD data.
Nvidia stock triggered the 7%-8% loss-cutting rule from a 587.76 buy point during Tuesday’s brief plunge before rebounding. On a positive note, shares did find support at their key 50-day moving average.
Shares fell over 1% Wednesday morning.