Dow Jones Futures: Stock Market Rallies On 'Nimble' Fed, 5 Chips Near Buys; SNOW Stock Crashes Late

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures as crude oil price continue to run higher. The stock market rally attempt showed strong gains Wednesday. Fed chief Jerome Powell vowed to be "nimble" with rate hikes, while a possible new round of Russia-Ukraine peace talks also helped.

SNOW stock crashed in late trading. Richly valued, unprofitable cloud-based data warehouse company Snowflake (SNOW) beat views, but revenue growth is slowing while its fiscal 2023 guidance was not good enough to satisfy investors. On Feb. 10-11, Snowflake stock tried to move above its 50-day line, but was turned away. Now SNOW stock could test its May 2021 post-IPO low.

Micron Technology (MU) and Rambus (RMBS) flashed early buy signals, while Axcelis Technologies (ACLS) is on the verge of doing so. Other chip plays close to being actionable include Alpha & Omega Semiconductor (AOSL) and Broadcom (AVGO), which reports earnings late Thursday.

Meanwhile, Apple stock rose solidly, moving toward its 50-day line and various buy points. Apple (AAPL) on Wednesday announced a March 8 product event, with a lower-cost 5G iPhone among the expected offerings.

Fed chief Powell told Congress he still favors a March rate hike but promised to "be nimble" amid "highly uncertain" economic impacts from the Ukraine crisis. Powell also said he backs a quarter-point move at the March 15-16 Fed meeting, seeming to take a half-point hike off the table.

Russia and Ukraine signaled they are open to fresh peace talks, but neither side seems poised to settle. Russia continues to expand its Ukraine invasion, while indiscriminate bombing is increasing civilian deaths in major cities. Fuel, food and other logistics remain a major problem for Russia's invasion force, according to U.S. defense officials. Russian troops and equipment appear to have suffered significant losses, in no small part because of logistics shortcomings.

MU stock is on IBD Leaderboard. Alpha & Omega and ACLS stock are on the IBD 50 list. Micron and AOSL stock were IBD Stock Of The Day selections this week.

The video embedded in this article discusses today's strong market price gains while also analyzing Oneok (OKE), Mosaic (MOS) and Micron stock.

Dow Jones Futures Today

Dow Jones futures dipped 0.2% vs. fair value. S&P 500 futures declined 0.25%. Nasdaq 100 futures retreated 0.3%. While SNOW stock is NYSE-listed, its overnight meltdown triggered losses in a number of other highly valued software stocks, including (BILL) and Datadog (DDOG).

U.S. crude oil futures rose 3% to above $114 a barrel.

The 10-year Treasury yield dipped to 1.85%.

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally once again started with modest moves but got rolling, this time to the upside. Fed chief Powell, stressing flexibility and modest policy moves amid hot inflation and Ukraine war uncertainty, helped buoy stocks.

The Dow Jones Industrial Average rose 1.8% in Wednesday's stock market trading. The S&P 500 index popped 1.9%. The Nasdaq composite climbed 1.6%. The small-cap Russell 2000 jumped 2.4%.

Crude oil prices rose nearly 7% to $110.60 a barrel, hitting $112.51 intraday. That's it's highest level since 2011.

Russia is having trouble finding buyers or shippers for its crude oil and other commodities, even at big discounts, raising global supply concerns. OPEC+ agreed to keep slowly unwinding pandemic-era production cuts

The 10-year Treasury yield rebounded 18 basis points to 1.865% after tumbling 12 basis points on Tuesday.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) sank 1.1% and ARK Genomics ETF (ARKG) 1.45%.

Five Best Chinese Stocks To Watch Now

Chip Stocks In, Near Buy Zones

Micron stock shot up 8.2% to 93.30 on Wednesday, rebounding back above its 50-day line in above-average volume. MU stock has a 96.60 cup-with-handle official buy point. But investors could have used the breaking of a short trendline within the handle as an early entry. The cup-with-handle pattern formed next to a much-longer cup-with-handle consolidation, which had a short-lived breakout in December.

Rambus stock popped 5% to 28.01 on modestly higher volume. The chip technology firm ended just below a 28.32 cup-with-handle point, according to MarketSmith. But investors could have bought RMBS stock as it rebounded from the 50-day line and broke a trendline starting from the Dec. 28 peak of 28.89. The relative strength line is already at a high while Rambus stock is still basing. That's a bullish sign and marked by a blue dot at the end of the RS line.

ACLS stock popped 7.3% to 71.59, also rebounding from the 50-day line. Investors could use 71.79, just above Monday's high, as an early entry. The official buy point is 75.10 from a loose handle in a cup base. The RS line for ACLS stock is already at a new high. Axcelis makes specialized chip equipment such as ion implantation systems and high-energy implanters

AOSL stock rose 4.6% to 53.39, moving off its 50-day line. Shares of the power-management-chip maker have a 59.48 entry. But investors could use a move above Tuesday's high of 55.73 + 10 cents as an early entry.

AVGO stock rose 2.75% to 585.78. Shares of the wireless-chip maker and software maker need to get above the 50-day line, with 614.74 a possible early entry. The official buy point for AVGO stock is 677.86. Broadcom earnings are due Thursday night.

Apple Stock

Apple stock climbed 2.1% to 166.56, but stopped short at its 21-day line. Investors could view AAPL stock as having a double-bottom base with a 176.75 buy point. Investors could use a trendline from the early January all-time high to find slightly early entry modestly above the 50-day line. The RS line for Apple stock is just below record levels.

Market Rally Analysis

The stock market rally attempt had a strong move Wednesday, with big price gains on the Dow Jones, S&P 500 index and Nasdaq.

The Russell 2000 is back above its 21-day line, but the February peaks and the 50-day loom.

The market remains extremely news-driven. The market direction can quickly shift up or down based on the latest headline.

One positive: Sentiment is turning bearish. Just 29.9% of investment newsletters are bullish, below the pandemic crash low. Meanwhile, 34.5% are bearish. When bears outnumber bulls, it's a strong sign that at least a short-term bottom looms, though not necessarily right away.

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