Dow Jones rises after sharp Fed rate cut; Nvidia and Tesla hit key levels | Investor's Business Daily

Dow Jones futures and other major stock indexes rose sharply on Thursday as Wall Street delayed its response to the Federal Reserve's major interest rate cut. Two early winners on the stock market today were NVIDIA (NVDA) and Tesla (TSLA). Both rose to important levels in morning trading.

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Before the start of trading, Dow Jones futures rose 1.2 percent, or 500 points above fair value, while S&P 500 futures rose 1.6 percent. Nasdaq 100 futures rose 2.2 percent in early trading.

Early Thursday, the yield on 10-year U.S. Treasury bonds rose to 3.72 percent. Oil prices rose 1 percent, with West Texas Intermediate futures trading at around $71.60 per barrel.

Among exchange-traded funds, the Invesco QQQ Trust (QQQ) rose 2.2%, while the SPDR S&P 500 ETF (SPY) gained 1.6% before the open.

Nvidia and Tesla hit important levels in morning trading on Thursday.

Nvidia stock rose 3.2 percent and is on track to reclaim its 50-day moving average. And Tesla soared 2.9 percent and is close to surpassing its early entry price of $235, the stock's high on Sept. 5.

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Stock market today: Unemployment claims

On Wednesday, the US Federal Reserve ordered an interest rate cut of half a percentage point, taking a first major step towards a full percentage point cut in the key interest rate by the end of the year.

New forecasts released with the monetary policy statement at 2 p.m. call for two more quarter-point rate cuts in 2024. This means there will be one cut at each of the last two meetings of the year, and another full percentage point cut next year.

Elsewhere, initial claims from the Labor Department fell to 219,000. According to Econoday, they were expected to remain stable at 230,000 compared to the previous week.

In addition, the Philadelphia Fed manufacturing index rebounded to 1.7 in September. It was expected to rise to 2.0 in September after being at -7.0 in August.

Later in the morning, the National Association of Realtors expects existing home sales to fall to 3.9 million in August, compared to July's annualized rate of 3.95 million.

An important earnings driver on Thursday was Restaurants Darden (DRI). Shares rose 7% in premarket trading.

Nvidia, Apple and Tesla show how to deal with this market

On Wednesday, the Dow Jones Industrial Average fell 0.25 percent, while the S&P 500 and Nasdaq Composite each fell 0.3 percent.

During Wednesday's IBD Live show, the IBD Live team discussed current trading conditions and how investors should trade in the stock market today.

Amazon overtakes Google. Tesla's Mag-7 card is again in danger.

Stock market today: The best stocks to keep an eye on

Companies to keep an eye on today’s stock market include Costco Wholesale (COST), DoorDash (DASH) and Spotify (POSITION).

Important Dow Jones components are Amazon.com (AMZN), Apple (AAPL), Home Depot (HD resolution), Microsoft (MSFT) and visa (V).

Home Depot and DoorDash were featured in the “Stocks Near a Buy Zone” column.

During trading activity on Wednesday, eight new stocks were added to IBD MarketSurge’s Breaking Out Today list. In particular, Sterling Infrastructure (STRL) surpassed a 130.89 double bottom entry. And the number of names on the site's Near Pivot list is growing. For more stock ideas, check out IBD stock lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone.

Pass it on, Nvidia, but these 19 stocks are already “perfect”

Dow Jones: Home Depot and Visa in buy zones

Dow Jones stock Visa is attempting to break out of a flat entry price of 290.96. Shares rose 1.1% on Thursday morning.

Additionally, Home Depot is in buy range above a 378.58 buy point, according to MarketSurge pattern recognition. Shares rose nearly 2% early Thursday.

Outside the Dow Jones index, Costco fell below its 896.67 cup base entry after three days of losses. The stock was up 1% on Thursday morning.

DoorDash ended Wednesday back above a cup-with-handle buy point at 131.21. Shares rose 3.7% early Thursday.

Finally, Spotify shares are consolidating, allowing an entry at 359.38. The music streaming platform gained 2.2% on Thursday.

Find the best stocks to buy and watch with IBD Stock Screener and IBD Screen Of The Day

Stock market today: Companies to keep an eye on

These are four stocks that are in or near the buy zone on today's trading session.

Source: IBD data as of September 10

Join IBD experts as they analyze leading stocks in today's stock market on IBD Live

The Magnificent Seven Stocks: Alphabet

Among the shares of the “Magnificent Seven” alphabet (GOOGL) traded 2.2% higher in early trading.

The Google parent company is back above its 200-day mark as it recovers. Shares approached their 50-day mark after extending the winning streak to six sessions on Wednesday.

Share of the “Magnificent Seven” Meta-platforms (META) rose 2.5% in premarket trading Thursday, with the Facebook parent company expected to break above a 542.81 buy point.

Dow Jones leader: Apple targets important level

Among the Dow Jones' “Magnificent Seven” stocks, Amazon shares reclaimed their 50-day line during last week's rally. Shares rose 2 percent on Thursday morning.

Apple is approaching the 50-day line despite a bearish-looking chart. A V-shaped cup with handle shows an entry at 232.92. Shares gained 1.7% on Thursday morning.

Microsoft shares are also back above their 50-day line and are forming a new base. On Thursday morning, the share price rose by 1.6 percent.

Follow Scott Lehtonen on X at @IBD_SLehtonen Learn more about growth stocks, the Dow Jones Industrial Average and the current stock market.

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