S&P 500 Surges Above Key Level On Fed Chief Powell, But Inflation, Jobs Report Loom | Investor's Business Daily - Investor's Business Daily

Salesforce.com headlined earnings overnight but investor focus will be on Thursday's PCE inflation report after Fed chief Jerome Powell triggered a tech-led stock market rally on Wednesday.

The Nasdaq led the way, with Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Tesla (TSLA) and Google parent Alphabet (GOOGL) all outpacing the composite.

VSCO stock fell slightly as Victoria's Secret earnings topped but sales fell just short.

The Commerce Department will release the PCE price index, the Fed's favorite inflation gauge, at 8:30 a.m.

The PCE inflation report, along with the November jobs report Friday, will help shape Fed rate hike expectations.

The 10-year Treasury yield fell 7 basis points to 3.63%.

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

The stock market rally was mixed for much of Wednesday's session, then took off on Fed chief Powell's comments, closing at session highs.

The Dow Jones Industrial Average popped 2.2% in Wednesday's stock market trading.

Microsoft stock and Nvidia, already above their 50-day lines, leapt 6.2% and 8.2%, respectively.

Tesla stock raced 7.7% higher, retaking its 21-day line.

The iShares Expanded Tech-Software Sector ETF (IGV) popped 4.4%, with Microsoft and CRM stock both major components.

The VanEck Vectors Semiconductor ETF (SMH) leapt 5.7%, with Nvidia stock a top holding.

Tesla stock remains a major holding across Ark Invest's ETFs.

The stock market rally made a big, bullish move in heavy volume Wednesday on Fed chief Powell's comments.

The S&P 500 index rebounded from near its 21-day line to top the 4,000 level and move above its 200-day line for the first time in seven months.

The Nasdaq composite, the laggard in the market rally, led the upside Wednesday.

Apple stock, Microsoft, Google, Nvidia and Tesla had strong gains Wednesday, but it's not clear that any of them will be leaders in the current uptrend.

The October PCE inflation report on Thursday and the November jobs report on Friday could reinforce Wednesday's bullish bounce or trigger a bearish retreat.

The stock market rally had a strong session, with the major indexes and leading stocks making encouraging moves.

But that will require a positive reaction to the upcoming PCE inflation data and jobs report.

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