Dow Jones Futures Drop as Stock Market Wavers on Iran Deal Uncertainty

Market Movements and Key Stock Performances

Dow Jones futures fell slightly after hours, along with S&P 500 futures and Nasdaq futures. This movement reflected a cautious sentiment in the market as investors awaited key developments.

Karman Holdings’ Performance

Karman Holdings (KRMN) reported its earnings after the close. The stock market rebounded on Wednesday morning, driven by hopes for a Trump peace plan to end the Iran war. Small caps had another strong day, while the major indexes came off their best levels, all stuck below their 200-day moving averages. Crude oil futures fell but pared losses significantly. Treasury yields retreated.

Memory stocks such as Sandisk (SNDK) and Micron (MU) fell on new demand concerns, but they came off lows. Meanwhile, Arm Holdings (ARM) spiked while Advanced Micro Devices (AMD) and Intel (INTC) rallied strongly, all on news.

Many space stocks jumped on reports that an IPO filing for Elon Musk’s SpaceX could come any day, while Tesla (TSLA) edged higher. Biotechs were strong performers, though not many are in position.

Caterpillar (CAT), Curtiss-Wright (CW), Marvell Technology (MRVL), BWX Technologies (BWXT), and Woodward (WWD) all rose. Karman stock is on the Leaderboard watchlist. Curtiss-Wright, Woodward, Karman, BWX Technologies, and Marvell stock are on the IBD 50. Micron stock, Sandisk, and Woodward are on the IBD Big Cap 20. Caterpillar was Wednesday’s IBD Stock Of The Day.

The video embedded in the article reviews Wednesday’s market action and analyzes Marvell stock, Woodward, and BMX Technologies.

Dow Jones Futures Today

Dow Jones futures were 0.2% below fair value. S&P 500 futures declined 0.2%, and Nasdaq 100 futures fell 0.3%. Crude oil futures climbed nearly 1% to $91 a barrel. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Karman Earnings

Karman earnings just missed EPS views, but sales slightly beat and the space play guided higher on revenue. KRMN stock edged lower overnight. In Wednesday’s regular session, the space stock briefly rose above a 107.56 cup-with-handle buy point amid the SpaceX IPO buzz, but faded to close down 2.2% to 99.60.

Stock Market Rally Attempt

The stock market rally attempt started Wednesday strong, buoyed by overnight reports that the U.S. submitted a peace plan to Iran. But Iran continues to deny any talks and rejected President Donald Trump’s proposals. For now, U.S.-Israeli strikes continue on Iran, which is retaliating with drones and missiles throughout the region.

As crude oil futures came off lows, stocks came off highs, with the Dow Jones and S&P 500 hitting resistance at the 200-day line.

The Dow Jones Industrial Average advanced 0.65% in Wednesday’s stock market trading. The S&P 500 index rose 0.5%. The Nasdaq composite gained 0.8%. The small-cap Russell 2000 popped 1.2%, close to session highs and testing its 21-day line.

The Invesco S&P 500 Equal Weight ETF (RSP) climbed 0.5%, modestly off its 200-day line.

Wednesday marked day three of a stock market rally attempt, which will continue as long as the major indexes hold above last Friday’s low. A follow-through day could come as soon as Thursday to confirm the rally attempt, but would likely be viewed with skepticism.

The S&P 500 and Nasdaq have closed low in their daily ranges for the past four sessions.

Key Stock Gains and Losses

ARM stock gapped up 16%, vaulting above the 200-day line and running up the right side of a deep base after the U.K. firm unveiled its first in-house AI chip. AMD stock and Intel leapt more than 7%, both reclaiming their 50-day lines on reports of CPU price hikes.

Micron and Sandisk stock lost more than 3%, but both came off lows with the latter holding its 21-day line. Google announced a compression method to significantly reduce AI’s memory needs.

U.S. crude oil prices declined 2.2% to $90.32 a barrel, though well off lows. Brent crude also sank 2.2%, to $102.22, after undercutting $100 intraday. Murban crude futures, based on United Arab Emirates oil, dived 16.4% to $100.26 after topping $160 just a few days ago.

The 10-year Treasury yield fell six basis points to 4.33%.

ETFs Performance

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) fell 0.5%. The VanEck Vectors Semiconductor ETF (SMH) climbed 1.1%. AMD stock, ARM, Micron, Intel, and Marvell are all in SMH.

ARK Innovation ETF (ARKK) rose 1.3% and ARK Genomics ETF (ARKG) advanced 0.8%. Tesla stock, the No. 1 holding across ARK Invest’s ETFs, edged up 0.8%.

SPDR S&P Metals & Mining ETF (XME) popped 1%. The Energy Select SPDR ETF (XLE) declined 0.4% and the Health Care Select Sector SPDR Fund (XLV) added 1%.

The Industrial Select Sector SPDR Fund (XLI) rose 0.7%. The Financial Select SPDR ETF (XLF) edged up 0.1%.

Best Growth Stocks To Buy And Watch

Stocks To Watch

Caterpillar stock edged up 0.3% to 719.04, continuing the week’s solid move off the 50-day line and above the 21-day line, offering an early entry in an emerging base. The Dow Jones heavy equipment maker is benefiting from the AI boom via construction projects and generator sales.

Marvell stock leapt 6.6% to 98.45, clearing the 95.05 buy point from a handle in a double-bottom base, according to MarketSurge. MRVL stock broke the downtrend of the handle on Tuesday.

Curtiss-Wright stock inched 0.2% higher to 702.25, extending the week’s move off the 50-day line. It’s actionable as CW works on a base.

BWX Technologies stock jumped 8.5% to 222.13, rebounding off the 50-day and breaking out past the 220.57 buy point. The relative strength line, which tracks a stock’s performance vs. the S&P 500, is at a new high.

Woodward stock gained 0.8% to 372.08, bouncing off the 50-day line and just regaining the 21-day, offering an early entry in a flat base. The buy point is 403.31.

What To Do Now

The stock market is in a rally attempt but closing poorly with the major indexes below their 200-day line. And the news-tweet-rumor nature of the market should add to wariness.

On the upside, a fair number of stocks are showing strength. Nimble traders can try a small position here or there, but have to cut losses just as quick.

Generally, investors should be mostly or even entirely in cash. But pay attention to the market and track stocks that are showing promise, so you’re ready for the next true uptrend.

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.