Dow Jones plummeted down on Thursday morning, along with the S&P 500 and the Nasdaq futures. The stock market traded mostly in the red on Wednesday, with stocks closing lower after the Federal Reserve meeting and Fed chief Jerome Powell’s press conference. Apple stock, Microsoft, Amazon.com, Netflix, PayPal, and Adobe struggled. However, software IPOs Snowflake and JFrog stock had excellent debuts.
Policymakers haven’t signaled to any Fed rate hikes through 2023 during the Fed meeting. On the other hand, the meeting statement and Fed chief Jerome Powell also gave no indication they would encourage inflation.
The stock market rally initially strengthened after the Fed’s news. Nonetheless, investors soon moved to selling, and the major indexes lowered. The Nasdaq composite took the hardest hit after briefly rising above its 21-day exponential moving average. The S&P 500 index tumbled in the red while the Dow Jones just stayed positive due to some real economy names, which fared well.
Apple hit resistance at its 21-day line, and Adobe stock dropped back below that key level despite strong earnings. Microsoft, Amazon stock, PayPal, and Netflix hit resistance at their 50-day lines.
Warren Buffett-backed Snowflake stock skyrocketed by 112% to 253.93 after hitting 319 intraday. Meanwhile, the Snowflake IPO managed to raise $3.4 billion. JFrog also surged forward by 47% to 64.79, raising $504 million. Both of them are priced above their expected ranges. Furthermore, China IPO KE Holdings broke out. KE Holdings stock debuted last month, and it was Wednesday’s IBD Stock Of The Day.
However, all three IPOs declined early on Thursday, as Wednesday’s action in the major indexes and stocks underscored that investors should remain cautious until the market truly rebounds. Stock market futures also underscore that concern.
Apple, Netflix, Amazon.com, Adobe, Microsoft, and PayPal are on IBD Leaderboard, and KE Holdings also joined that elite group. Adobe, PayPal, and Microsoft stock are IBD Long-Term Leaders.
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