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).
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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