Nasdaq Extends Gains As Advanced Micro, Nvidia, Micron Lead Another Chip Rally

The major averages held decent gains in afternoon trading Tuesday as the two-day Federal Reserve meeting got underway. Stocks today showing big gains in the Nasdaq 100 included Advanced Micro Devices (AMD), Nvidia (NVDA) and Micron Technology (MU).

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Chip stocks today were generally strong after Nvidia said Amazon.com (AMZN) will use the company’s T4 data-center chips. Amazon is a dominant player in public cloud services.

Earnings from Micron, meanwhile, are due Wednesday after the close.

Van Eck Vectors Seminconductor ETF (SMH) was on the move again, up 1.2% after a breakout from a cup-with-handle base Friday

The Dow Jones industrials, S&P 500 and Nasdaq composite were up 0.3% to 0.5%. Small caps couldn’t keep up, with the Russell 2000 down 0.1%. Volume on the NYSE was tracking below Monday’s levels in the stock market today. Nasdaq volume was on pace to be close to Monday.

What Will The Fed Do?

A decision on interest rates will be out Wednesday at 2 p.m. ET. The Federal Open Market Committee is widely expected to stand pat on interest rates for the foreseeable future. If fact, there’s growing talk that a rate cut could come before a rate hike.

In the Dow Jones today, volatile trading in Boeing (BA) stock continued. Shares were up 1% to 376.37 after hitting an intraday high of 378.77. Regulators are now questioning a safety analysis of the 737 Max flight control system.

Other Top Stocks Today

Heavy-volume gainers included Brazilian payments firm StoneCo (STNE). Shares gapped up and soared 18% after the company reported strong earnings late Monday.

IBD Sector Leader and IBD 50 name PagSeguro Digital (PAGS) followed StoneCo higher, up 6%. It’s another Brazilian payments processor.

After Tilray (TLRY) reported¬†earnings late Monday, the marijuana stock reversed lower after a strong start. But ETFMG Alternative Harvest ETF (MJ) held in there. It was up 1.8% to 39.02. It’s still in buy range after a breakout from a cup-with-handle base with a 38.45 entry.

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