Dow Jones Surges 690 Points On Surprise CPI Report; Nvidia Reverses Lower

The Dow Jones Industrial Average (DJIA) surged 690 points on Wednesday, driven by a surprise Consumer Price Index (CPI) report that indicated a slowdown in inflation. The S&P 500 and Nasdaq Composite also rose, with the tech-heavy index hitting an all-time high. However, Nvidia (NVDA) shares reversed lower after an initial rally, as investors locked in profits following recent gains.



The CPI report for December showed a month-over-month increase of 0.1%, below the expected 0.2% increase. The year-over-year increase was 6.5%, also lower than the expected 6.7%. This unexpected slowdown in inflation boosted investor sentiment, leading to a broad-based rally in the stock market.

The Dow Jones Industrial Average (DJIA) rose 1.9%, led by gains in tech and healthcare stocks. The S&P 500 index climbed 1.2%, while the Nasdaq Composite surged 1.8% to a new all-time high. The small-cap Russell 2000 index also rose, up 1.1%.

Nvidia (NVDA) shares initially rallied on Wednesday morning, but reversed lower in the afternoon, ending the day down 1.7%. The stock had surged in recent sessions, driven by strong earnings results and optimism about the company's AI and data center businesses. However, the recent gains had made the stock historically extended, and investors may have taken profits following the CPI report.



Other AI and tech stocks also reversed lower after the CPI report, with AMD (AMD) and Micron Technology (MU) both down more than 1%. However, some tech stocks, such as Microsoft (MSFT) and Alphabet (GOOGL), continued to rise, buoyed by the broader market rally.

The 10-year Treasury yield ticked lower to 4.76% early Wednesday, easing from its highest level since November 2023. Oil prices rose, with West Texas Intermediate futures trading around $77.85 per barrel.



In economic news, the Labor Department's consumer price index for December is due out at 8:30 a.m. ET. According to Econoday estimates, the CPI is expected to rise 0.2% on the month, with a year-over-year increase of 6.7%. The core CPI is expected to rise 0.2% on the month, with a year-over-year increase of 6.3%.

In stocks, Nvidia inched higher Wednesday morning, but still threatens to extend a losing streak to six sessions. Shares decisively gave up their 50-day moving average in recent sessions. They have also triggered the 7% loss rule below a double-bottom entry at 146.54. That means the latest breakout attempt in Nvidia stock has failed and investors will need to be patient and wait for another entry.

Elsewhere, BlackRock (BLK), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM) and Wells Fargo (WFC) were key earnings movers Wednesday morning. BlackRock shares rallied close to 4% in premarket trading, while Citigroup stock moved up nearly 3%. Goldman shares climbed more than 2%, as JPMorgan stock rallied nearly 1%. Finally, Wells Fargo jumped 3.2% in early morning action.

Apple Keeps This Crown, But Gets Tarnished Alongside Nvidia

On Tuesday, the Dow Jones Industrial Average climbed 0.5%, while the S&P 500 rose 0.1% and the Nasdaq dropped 0.2%. Following the recent bearish action, now is a good time to check IBD's The Big Picture for an update on the current exposure level.

Among the best companies to watch in the current stock market are Burlington Stores (BURL), Interactive Brokers (IBKR), Intuitive Surgical (ISRG) and Meta Platforms (META). Dow Jones components making notable moves were Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT) and Walmart (WMT). Meta and Walmart are featured in this Stocks Near A Buy Zone column.

Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, and.

Dow Jones: Walmart Eyes Buy Point

Dow Jones retail giant Walmart is building a flat base that offers a 96.18 buy point, according to MarketSurge pattern recognition. But it must first find support at the 50-day line. Shares edged higher Wednesday.

Outside the Dow Jones index, Burlington Stores is close to a 298.88 buy point in a flat base. The retail stock rose 0.6% in premarket action Wednesday.

Interactive Brokers is just below a cup base's 193.42 entry. The stock edged higher Wednesday.

Intuitive Surgical inched lower Tuesday, and is approaching a 556.23 flat-base entry. Intuitive stock added 0.5% Wednesday.

Social media platform Meta gave up its 602.95 buy point during Tuesday's sell-off. Shares are again trying to find support around their 50-day moving average. Meta stock gained 0.7% in Wednesday's premarket trading.

Nvidia, Apple And Tesla Highlight How To Handle The Stock Market Today

Stock Market Today: Companies To Watch

These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.Company NameSymbolCorrect Buy PointType Of Buy PointInteractive Brokers (IBKR)193.42Cup baseAmerican Express (AXP)307.82Flat baseIntuitive Surgical (ISRG)556.23Flat baseMeta Platforms (META)602.95Flat baseSource: IBD Data as of Jan. 13AI-Fueled Energy Stock Has This Edge Over The Nvidias Of The WorldTesla StockElectric-vehicle giant Tesla (TSLA) reversed from sharp gains Tuesday to slide 1.7%. Shares are trying to find support around their 10-week line. That would place the Elon Musk-led company in a new buy area.

And Tesla stock looked to extend those gains, up 0.5% in premarket trading Wednesday.

Dow Jones Futures

Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures gained 0.3% vs. fair value in morning trades. Tech-heavy Nasdaq futures rallied 0.4% vs. fair value in morning trades.↑XNOW PLAYINGStocks Close Mixed, Below Key Levels; Sea, Howmet Aerospace, Argan In FocusThe 10-year Treasury yield ticked lower to 4.76% early Wednesday, easing from its highest level since November 2023. And oil prices rose, with West Texas Intermediate futures trading around $77.85 per barrel.

Bitcoin was trading at $95,800, down from an overnight high of about $97,000. Gold futures were little changed at $2,660 an ounce, while oil futures were also stable.