Dow Jones Up 273 Points While Nasdaq Leads Upside As Two Chip Stocks Score Breakouts

The Dow Jones Industrial Average traded higher in today’s stock market, while the S&P 500 also held onto gains. The Nasdaq also remained higher. All the major indexes opened higher and continued trading near their session highs.




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Stock Market Today

The Nasdaq rose 1.6%, the S&P 500 gained roughly 1% and the Dow Jones industrials increased 0.8%. The Russell 2000 index advanced 1.8%, leading on the upside. Volume was lower on the Nasdaq and on the NYSE vs. the same time on Friday.

On Monday, stocks were higher after a major sell-off last week. The Dow rallied more than 270 points at midday. The Dow continued to rebound from a test of support at the 50-day moving average, while the Nasdaq and S&P 500 continued their rebounds.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35385.19 +265.11 +0.75
S&P 500 (0S&P5) 4486.75 +45.08 +1.01
Nasdaq (0NDQC ) 14953.74 +239.08 +1.62
Russell 2000 (IWM) 219.41 +3.89 +1.80
IBD 50 (FFTY) 46.38 +1.08 +2.38
Last Update: 3:12 PM ET 8/23/2021

As for top growth stocks in the stock market, the Innovator IBD 50 ETF (FFTY) rose 2.2% Monday, beating the indexes. The ETF continues to rise above its 50-day line. Stocks leading the index included Doximity (DOCS), Sprout Social (SPT) and Nvidia (NVDA).

Nvidia rose 5% on Monday. The leading chip stock reported strong earnings last week and rose substantially. Shares are now slightly extended from the nearest 207.43 buy point of a cup-with-handle base. The position size was increased on Leaderboard Thursday and increased again Friday.

Meanwhile, two semiconductor stocks broke out on Monday: Diodes (DIOD) and Maxim Integrated Products (MXIM).

Chip designer Maxim Integrated Products broke out from a 105.59 flat-base buy point and rose nearly 5%. Shares gapped up in heavy volume and remain inside the buy area, which tops out at 110.86. The stock rose on news that China’s State Administration for Market Regulation officially gave antitrust clearance for Analog Devices (ADI) to acquire Maxim.

Diodes broke out from a 91.12 cup-with-handle buy point. The stock rose 2.3% and remains inside the buy area. Shares reached a new 52-week high on Monday of 92.96. The Texas-based chipmaker delivered a second straight quarter of triple-digit profit growth and sales growth above 46% earlier this month.

Additionally, semiconductor ETFs VanEck Vectors Semiconductor (SMH) and iShares Semiconductor (SOXX) rallied. Each rose more than 2% and reclaimed the 50-day line.

Dow Jones Today

The Dow Jones continued to rebound back above its 35,000 level, after falling below this round number last week.

Inside the Dow, big-cap tech stocks were mostly higher, including Apple (AAPL) and Salesforce.com (CRM), with gains of above 1% each. Apple stock moved back above a 148 trend-line buy point. Shares hit an all-time high on Aug. 18 at 151.68 before reversing lower.

Microsoft (MSFT) traded flat on Monday. Shares remain extended from a cup base with a 263.29 buy point. The stock reached a new high of 305.84 on Friday. Microsoft, an IBD Long-Term Leader, said last week it would raise prices on its Office 365 and Microsoft 365 suite.

Finally, Chevron (CVX) rose 2.6% on Monday after a rise in crude oil prices. U.S. West Texas intermediate crude oil futures rose over 5.5% to above $65 a barrel after undergoing its longest losing streak since early 2018. Meanwhile, Brent crude jumped above $67 per barrel.

Shares of Chevron still remain below their 50-day and 200-day lines.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.

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Roy Walsh

Roy Walsh

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