Dow Jones futures fell 425 points as CPI inflation exceeded estimates. Nvidia partner Super Micro surged despite weak earnings. Key market updates inside.
Table of Contents
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| AppLovin | (APP) | 417.63 | Cup base |
| Home Depot | (HD) | 426.19 | Cup with handle |
| Royal Caribbean | (RCL) | 258.79 | Flat base |
| TJX | (TJX) | 128.00 | Flat base |
📉 Market Overview: Dow Jones Futures Drop as Inflation Heats Up
Stock market futures took a sharp hit early Wednesday as inflation data came in hotter than expected 📊. The Dow Jones Industrial Average dropped 425 points (-1%), while the S&P 500 and Nasdaq 100 fell 1.1% and 1.2%, respectively.
🔹 Key Market Moves:
✔️ 10-Year Treasury Yield: Rose to 4.61%
✔️ Oil Prices: West Texas Intermediate (WTI) fell to $72.50 per barrel
✔️ ETF Movements: QQQ fell 1.2%, SPY dropped 1.1%
🔥 CPI Inflation Data Shocks Investors
The Consumer Price Index (CPI) for January increased 0.5%, pushing annual inflation to 3%—higher than the expected 2.9%.
📊 Core CPI (excluding food and energy):
- Monthly Increase: 0.4% (vs. 0.3% expected)
- Annual Growth: 3.3% (vs. 3.1% expected)
🚨 Why It Matters: Higher-than-expected inflation raises concerns that the Federal Reserve may delay rate cuts, putting more pressure on the stock market.
📌 Powell Testimony: What’s Next for Interest Rates?
Federal Reserve Chair Jerome Powell hinted on Tuesday that monetary policy may remain restrictive if inflation stays above 2%.
📢 Key Event Today:
Powell will testify before the House Financial Services Committee at 10 a.m. ET, where investors will look for clues on future interest rate decisions.
🚀 Super Micro Soars Despite Weak Earnings
One of the biggest stock movers today is Super Micro Computer (SMCI), a key Nvidia (NVDA) partner.
📉 Earnings Report:
- Missed expectations for Q2 FY2025
- Slashed FY2025 revenue outlook
📈 Why the Stock is Surging (+10%)?
- Higher-than-expected revenue forecast for FY2026
- Investors are optimistic about long-term AI growth
✅ Takeaway: AI and tech-related stocks continue to drive market volatility.
📈 Earnings Movers: CVS, DoorDash, Lyft in Focus
Several big companies reported earnings today, driving market movements:
✔️ CVS Health (CVS): 📈 +10% (Strong earnings report)
✔️ DoorDash (DASH): 📈 +5.8% (Beat revenue expectations)
✔️ Lyft (LYFT): 📉 -13% (Weak guidance)
✔️ CME Group (CME): 📈 Slight gains
📊 Stock Market Recap: Tuesday’s Performance
The market showed mixed results on Tuesday:
📌 Dow Jones: 📈 +0.3%
📌 S&P 500: 📈 Slightly higher
📌 Nasdaq: 📉 -0.4%
🚀 Top Stocks to Watch:
✅ AppLovin (APP) – Buy point: 417.63 (Cup base)
✅ Home Depot (HD) – Buy point: 426.19 (Cup with handle)
✅ Royal Caribbean (RCL) – Buy point: 258.79 (Flat base)
✅ TJX (TJX) – Buy point: 128.00 (Flat base)
📉 Nvidia, Tesla Struggle Amid Market Volatility
Nvidia (NVDA):
📌 Fell 0.6% Tuesday, snapping a 5-day win streak
📌 Testing resistance at the 50-day moving average
📌 Up 0.4% premarket today
Tesla (TSLA):
📉 -6.3% on Tuesday (Lowest close since Nov. 15)
📌 Down 33% from 52-week high
📈 Rebounded +2% premarket
📊 Dow Jones Leaders: Amazon, Apple, Microsoft
📌 Amazon (AMZN): Fell below $233 buy point (-0.3% premarket)
📌 Apple (AAPL): Rose 2.2% Tuesday, consolidating below 50-day line
📌 Microsoft (MSFT): Slight decline, struggling to regain 50-day level
🛠️ How to Navigate Market Volatility?
With rising inflation and Fed uncertainty, investors should:
✅ Monitor CPI & Fed statements for rate hike signals
✅ Focus on strong earnings movers
✅ Watch key resistance levels for stocks like NVDA & TSLA
📢 Final Takeaway: Inflation concerns are shaking the markets, but tech and AI stocks like Nvidia & Super Micro still show long-term potential. Stay informed, watch Fed decisions, and adjust strategies accordingly.
