Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. FedEx (FDX) and Tesla (TSLA) rival Rivian (RIVN) vaulted late on news.

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Market Shifts Back To Nasdaq; Meta Platforms, Novo Nordisk, MercadoLibre In Focus

The stock market rally was mixed yet again on Tuesday, but this time the Nasdaq led while the Dow Jones and small caps struggled. Nvidia (NVDA) rebounded after a three-session sell-off.

With the market indexes, using weekly charts can filter out the noise of back-and-forth market rotation.

Meta Platforms (META), Novo Nordisk (NVO), MercadoLibre (MELI) all flashed buy signals in different ways.

Nvidia stock and Novo Nordisk are on IBD Leaderboard, with Meta Platforms on Leaderboard watchlist. Novo Nordisk and Meta stock are on SwingTrader. Nvidia and Novo Nordisk stock are on the IBD 50.

The video embedded in this article analyzes Tuesday’s market action and reviews Meta Platforms stock, Novo Nordisk and MercadoLibre.

Dow Jones Futures Today

Dow Jones futures fell a fraction vs. fair value. S&P 500 futures rose 0.1% and Nasdaq 100 futures climbed 0.2%.

The 10-year Treasury yield rose to 4.27%.

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

Rivian Soars On Volkswagen Deal

German auto giant Volkswagen (VWAGY) will invest $5 billion in EV startup Rivian Automotive. It’ll buy $3 billion in Rivian stock, including an initial $1 billion. It’ll also put $2 billion into a software joint venture, using Rivian’s vehicle tech as the foundation for future vehicles.

Rivian stock erupted 50%, which, if it sustains in regular session trading, would push it well above the 200-day line for the first time since early January. RIVN stock rose 8.6% to 11.96 in Tuesday’s regular session.

FedEx Earnings

FedEx earnings and revenue slightly beat fiscal Q4 views while the shipping giant also gave bullish guidance for fiscal 2025.

FDX stock climbed 14% in extended trading after closing just between the 50-day and 200-day lines. FedEx stock is set to clear or at least test a 291.27 buy point.

Tesla stock was little changed late. Shares rose 2.6% to 187.35 on Tuesday, working on a 191.08 handle buy point. But the TSLA stock base is below the 200-day line.

Join IBD experts as they analyze leading stocks and the market on IBD Live

Stock Market Rally

The stock market rally rotated back toward Nvidia and the Nasdaq after a few days of the Dow and non-tech sectors taking the lead.

The Dow Jones Industrial Average sank 0.8% in Tuesday’s stock market trading. The S&P 500 index climbed 0.4%. The Nasdaq composite rose 1.3%

Market breadth, which had perked up on Monday, was narrow on Tuesday.

The small-cap Russell 2000 fell 0.4% after hitting resistance at the 50-day line on Monday. The S&P MidCap 400 slumped 1%, back below the 50-day.

The Invesco S&P 500 Equal Weight ETF (RSP) retreated 0.7%, back below the 21-day line and testing the 50-day.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) climbed 0.4%, holding near highs, but lagging the Nasdaq 100’s Nasdaq-infused 1.2% gain.

Meanwhile, while there have been some big market swings in the past several days, and these indexes and equal-weight ETFs generally are showing tight weekly closes.

U.S. crude oil prices fell 1% to $80.83 a barrel.

The 10-year Treasury yield fell one basis point to 4.24%.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.6%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.8%. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.3%. Nvidia is a key SMH holding.

SPDR S&P Metals & Mining ETF (XME) fell 1.6%. The SPDR S&P Homebuilders ETF (XHB) tumbled 2.8%. The Energy Select SPDR ETF (XLE) edged up 0.2% and the Health Care Select Sector SPDR Fund (XLV) dipped 0.3%.

The Industrial Select Sector SPDR Fund (XLI) retreated 0.85% and the Financial Select SPDR ETF (XLF) lost 0.75%.

Time The Market With IBD’s ETF Market Strategy

Stock Market Today: Nvidia Rebounds

Nvidia stock jumped 6.8% to 126.09 on Tuesday, back above its 21-day exponential moving average. Shares had tumbled in the three prior sessions from Thursday’s intraday all-time high of 140.76. NVDA stock reclaimed the $3 trillion market cap level, at $3.11 trillion.

The AI chip giant could use an extended pause, perhaps a new base, before making another big advance.

Nvidia stock rose slightly overnight.

Stocks In Buy Areas

Novo Nordisk stock popped 3.25% to 146.91, hitting an all-time high. That pushed the Danish drug giant out of range of a 137.22 cup-with-handle buy point. However, NVO stock is actionable from a three-weeks-tight entry of 144.50 that forged within the base’s buy zone. On Tuesday, China approved Novo Nordisk weight-loss drug Wegovy for use in that country.

Meta stock rose 1.5% to 141.12, breaking the downtrend of a handle, providing an early entry. The Facebook and Instagram parent has a 514.01 cup-with-handle buy point, according to MarketSurge.

MercadoLibre bounced 3.75% to 1,642.28, rebounding from the 50-day line, retaking the 21-day line and breaking the downslope of a long handle. That offered an early entry, or perhaps a place to start a position. MELI stock has a 1,792.05 cup-with-handle buy point. The Latin American e-commerce and payments giant is growing strongly. But while MELI stock has gone on strong runs, it’s struggled since mid-February.

What To Do Now

After shifting away from AI plays for a few days, Nvidia led and the Dow lagged on Tuesday.

One problem with stock market rotation in a divided rally is that it’s hard to know if the rotation will have staying power or if the prior trend reasserts itself.

Weekly charts cancel a lot of the daily swings, with the underlying power trend evident for the Nasdaq.

Still with the market leadership in flux, exiting or entering positions is tricky. You can make new buys, but do so carefully, ready to tap or step on the brakes if the market shifts again.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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