Dow rises ahead of Fed rate hike as 10-year Treasury yields fall

The Dow Jones Industrial Average rose Wednesday morning ahead of the upcoming Federal Reserve’s decision to raise interest rates. 10-year Treasury yields are dropping after the big gains so far this week.


Bitcoin and cryptocurrency stocks have fallen sharply again. Bitcoin is down about 3%, bouncing just above $21,000, according to CoinDesk. Queen Piece (COIN) is down about 1%, while micro . strategy (MSTR) is up 2%.

China-based search engine giant Baidu (BIDU) rose about 2% after the opening, after Reuters reported that the company was in talks to sell its stake in the video platform. iQiyi (I.Q). Baidu owns 53% of the shares and more than 90% of the voting rights of the company’s shareholders. Reuters said the deal could be estimated at $7 billion. iQiyi shares fell 1%.

electric car giant Tesla (TSLA) traded up about 2% on Wednesday. Elsewhere, technology leaders at Dow Jones apple (AAPL) and Microsoft (MSFT) is up 1% and 1.4%, respectively, after the stock market opened today.

Amid a correction in the stock market, the leaders of Dow Jones chevron (CVX), as well Diamondback Energy (FANG), the health (HQY), Northrop Grumman (No Objection Certificate), Quanta Services (PWR) and world wrestling entertainment (WWE), among the stocks that held up best despite market weakness.

Quanta is the IBD Leaderboard watchlist stock. And WWE appeared in the stock column near the buy zone for this week. HealthEquity was Tuesday’s stockpile of the IBD.

Fed meeting: 4 key questions that will shape Dow Jones’ outlook

Dow Jones today: Treasury yields, oil prices, Fed decision

After Wednesday’s opening, the Dow Jones Industrial Average rose 1.2%, with JP Morgan (JPM) Driving Early Advances. The S&P 500 rose 1.4% and the Nasdaq Technology Composite Index advanced 1.7%.

Among the exchange-traded funds, the Nasdaq 100 index tracking the Invesco QQQ Trust (QQQ) is up 1.7%. The SPDR S&P 500 ETF (SPY) is up 1.4% in early trade.

The 10-year Treasury yield fell to 3.37% Wednesday morning after Tuesday’s jump to 3.48%, its highest level since April 2011. Meanwhile, US oil prices remain near recent highs, with West Texas Intermediate trading around 118 dollars per barrel. In early March, West Texas Intermediate crude briefly exceeded $130 a barrel.

The Federal Reserve will conclude its last two-day policy meeting Wednesday, with a rate decision at 2 p.m. ET. The post-meeting press conference for Federal Reserve Chairman Jerome Powell will take place at 2:30 p.m., and financial markets are estimating a 95% chance of a rate hike of 0.75 point, according to CME Group’s FedWatch page.

In other economic data, US retail sales fell 0.3% in May, worse than the expected 0.1% rise, according to Econoday estimates. Meanwhile, the Empire State Manufacturing Index lost estimates, coming in at -1.2 vs. Expected reading 5.5.

stock market correction

The stock market ended in a mixed movement on Tuesday, with the Dow Jones Industrial Average down 0.5%, while the Nasdaq rose 0.2%.

Tuesday’s big picture column commented, “After dropping 10.6% in the previous three sessions, the Nasdaq Composite has made a 0.2% gain in the stock market today. The Nasdaq on Monday cut its low on May 20, paving the way for a potential test of the lows Its level in September 2020 is 10519.”

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Four Dow Jones stocks worth watching right now

Dow Jones stocks to watch: Chevron

Leading Dow Jones and energy giant Chevron have abandoned their flat base buying point of 174.86, according to IBD MarketSmith chart analysis, after Tuesday’s 0.1% rally. CVX shares fell inches on Wednesday morning.

CVX Stock boasts a perfect 99 IBD compound rating, for every IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Two of the most important growth stocks to watch at Cursstock market correction

Stocks to watch: Diamondback, HealthEquity, Northrop, Quanta, WWE

Diamondback Energy, the energy leader, is in a buying range above the 148.09 buy point of the consolidation base, as the stock rose 1.2% on Tuesday to find support around the 50-day line. Keep in mind that a weak market environment should keep you on the sidelines. FANG shares are down 1% on Wednesday morning.

Tuesday’s stock of IBD, HealthEquity, overtook a cup with 66.23 buying points, as shares jumped 5.9% Tuesday. Shares were up 0.5% on Wednesday morning.

Northrop Grumman is trying to find much-needed support at the 50-day moving average, which is about 5% below the handle cup buy point at 477.36. Shares of the National Oil Corporation rose 1% on Wednesday.

Big Cap 20 Quanta Services track cup with handle stock 138.56 pts. Stocks are at the 50-day line, which is a key support level to watch. Shares of Quanta rose 0.5 percent early on Wednesday.

World Wrestling Entertainment is holding IBD Leaderboard shares just above 63.81 firm-base buying points, according to IBD MarketSmith chart analysis, as WWE shares surged on Tuesday. On May 25th, the stock made a strong breakout after entering. But stocks are just above the latest entry in the new wave of market selling. WWE shares rose nearly 1% early Wednesday after Morgan Stanley raised his price target from 60 to 75.

According to leaderboard commentary, the WWE stock’s relative strength streak is at an all-time high and has been gaining ground since January. The base is the first stage, which is a bonus for the graph.

Join IBD experts as they analyze the leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock rose 2.4% on Tuesday, cutting a three-day losing streak. Stocks looked set to add to those gains, as they traded nearly 2% higher on Wednesday morning.

The stock is still sharply below its 50 and 200 day moving averages. Tesla stock traded as high as 1,243.49 in November. 4. Stocks are about 48% of this record.

Dow Jones Leaders: Apple and Microsoft

Among Dow Jones shares, Apple shares rose 0.7% on Tuesday, but are still at their lowest level since June 2021. The stock is well below the long-term 200-day streak and about 28% from its 52-week high. AAPL stock traded 1% higher on Wednesday.

Software leader Microsoft gained 0.9% on Tuesday, but it’s still sharply below its 50 and 200-day lines. The stock reached a 52-week low on Tuesday which is nearly 30% from a 52-week high. MSFT shares rose 1.4% on Wednesday.

Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.

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