Dow Jones Futures: Nasdaq Dives To New Lows As Treasury Yields Soar In Delayed

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures, with the jobs report on tap Friday morning. The stock market plunged Thursday, wiping out Wednesday’s big gains as the 10-year Treasury yield surged above 3% in a second-day reaction to the Fed meeting.

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The Dow Jones tumbled more than 1,000 points while the Nasdaq dived to its lowest levels since 2020, ending its short-lived rally attempt. The market rally attempts are still alive, barely, on the S&P 500 and Dow.

Investors who had tiptoed into the new stock market rally attempt may want to scale back.

Vertex Pharmaceuticals (VRTX) reported mixed earnings late Thursday. VRTX stock closed at the edge of a buy zone after testing support at its 50-day line earlier in the week. Boise Cascade (BCC) is worth watching, trading near a buy point with earnings due Friday morning.

Northrop Grumman (NOC), Pioneer Natural Resources (PXD), Merck (MRK) and Albemarle (ALB), all with earnings out of the way, also are near buy points within relatively strong sectors.

Tesla stock and Vertex are on IBD Leaderboard and the IBD 50. Merck stock is on SwingTrader and the IBD Big Cap 20.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures declined 0.2%. Nasdaq 100 futures dipped 0.2%.

The 10-year Treasury yield rose 1 basis point to 3.08%.

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

Jobs Report

The Labor Department will release the April jobs report at 8:30 a.m. ET. Economists expect nonfarm payrolls to rise by 400,000 with the unemployment rate holding at 3.6%. Wages are expected to jump 5.5% vs. a year earlier, slightly below March’s pace and not keeping up with inflation.

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Stock Market Rally

The stock market rally sold off throughout the session, closing with huge losses after Wednesday’s encouraging advance.

The Dow Jones Industrial Average fell 1,063 points, or 3.1%, in Thursday’s stock market trading. The S&P 500 index tumbled 3.6%. The Nasdaq composite dived 5%. The small-cap Russell 2000 lost 4%.

Apple stock tumbled 5.6% to 156.77, back below its 50-day and 200-day lines. AAPL stock flashed an early buy signal Wednesday as it reclaimed its 50-day line and nudged past a short trendline.

Tesla stock plunged 8.3% to 873.28, also back below its 50-day and 200-day line. CEO Elon Musk lined up some financing to help with his Twitter takeover, but he’s also going to be Twitter (TWTR) CEO temporarily when he takes over. Those are mixed messages for Tesla and, for TSLA stock, the market sell-off was real driver Thursday.

Why The Fed Rally Failed: The Dow Has A Catch-2022 Problem

Treasury Yields Soar

The 10-year Treasury yield vaulted 15 basis points to 3.07%, the highest point since late 2018. The yield is closing in on an 11-year high of 3.25%.

On Wednesday, the 10-year yield fell modestly as Fed chief Jerome Powell said policymakers weren’t actively considering 75-basis-point hikes at the June and July meeting. But the Fed is still being…