Dow Jones Futures: Stock Market Sells Off As Fed Moves To Exit;
Dow Jones futures were little changed Wednesday night, along with S&P 500 futures and Nasdaq futures, with Nvidia stock, Cisco and Robinhood (HOOD) among the key earnings movers. The stock market rally closed at session lows Wednesday as Fed minutes suggested the central bank could start scaling back asset buys this year.
X
The Federal Reserve was not yet ready to begin formal “taper talk” late last month, according to the Fed minutes from the July meeting. But several policymakers thought the Fed would begin tapering its monthly bond purchases by year-end, though some thought it would start in early 2022.
Some Fed officials worried about inflation remaining hot for longer, in part due to the ongoing bond buying program. The delta variant was seen as a downside risk for economic growth but also could extend supply chain woes and thus inflation.
The stock market rally gave up ground following the Fed minutes release. Apple (AAPL) fell to just under its 21-day exponential moving average. AAPL stock had flashed a couple of entry points from last Thursday to Monday, rebounding from the 21-day line and clearing a short consolidation.
Key Earnings
Nvidia (NVDA), Robinhood, Cisco Systems (CSCO) and dLocal (DLO) reported earnings after Wednesday’s close.
Nvidia stock climbed modestly on strong earnings late, while rival Advanced Micro Devices (AMD) nudged higher in sympathy. SNPS stock, already in a buy zone, rose to record highs overnight. Cisco and HOOD stock fell on guidance. DLO stock skyrocketed.
Macy’s (M) and Kohl’s (KSS) report early Thursday.
Tesla AI Day
Tesla AI Day looms Thursday night. It’s not clear what the event will showcase. Tesla’s self-driving systems, Autopilot and Full Self-Driving, are an attempt to apply a form of AI.
On Monday, the National Highway Traffic Safety Agency opened a Tesla Autopilot probe related to crashes into emergency vehicles on the side of roads. The announcement including language suggesting a tougher approach than previously.
Tesla stock rebounded Wednesday, up 3.5% to 688.99. Shares fell Tuesday but closed just above its 50-day and 200-day lines. The new early entry for TSLA stock is 730, just above last Friday’s intraday high.
Tesla and Nvidia stock are on IBD Leaderboard. AMD stock is on the IBD 50. SNPS stock is on IBD Long-Term Leaders.
The video embedded in this article took a look at ZIM Integrated Shipping (ZIM), steelmaker Cleveland-Cliffs (CLF) and Atlassian (TEAM). TEAM stock also is a Long-Term Leader.
Dow Jones Futures Today
Dow Jones futures were steady vs. fair value. S&P 500 futures dipped 0.1%. Nasdaq 100 futures were little changed. Cisco stock is a Dow Jones, S&P 500 and Nasdaq component.
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 didn’t…
Read More: Dow Jones Futures: Stock Market Sells Off As Fed Moves To Exit;