Dow Jones Rallies As S&P 500, Nasdaq Hit New Highs; Chip Stocks Soar, Bitcoin Tops $50,000

Stocks extended their gains Monday afternoon as the Dow Jones Industrial Average rallied more than 300 points and the Nasdaq and S&P 500 marked new highs.


The Nasdaq rallied 1.7%, the S&P 500 rose 1% and the Dow Jones industrials gained 0.8% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1.8%. Volume was mixed, lower on the NYSE and higher on the Nasdaq, vs. the same time Friday.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 2.3%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) gained 1.2%.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased.

But cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.

Covid-19 Update

Cumulative Covid-19 cases worldwide are approaching 213 million, with over 4.4 million deaths, according to Worldometer. In the U.S., cases have surpassed 38 million with more than 645,000 deaths.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35392.10 +272.02 +0.77
S&P 500 (0S&P5) 4486.87 +45.20 +1.02
Nasdaq (0NDQC ) 14957.18 +242.52 +1.65
Russell 2000 (IWM) 219.46 +3.94 +1.83
IBD 50 (FFTY) 46.35 +1.05 +2.32
Last Update: 2:42 PM ET 8/23/2021

Covid-19 vaccine makers rallied as the world grapples with the delta variant. Early Monday, the Food and Drug Administration gave full approval to the vaccine from Pfizer (PFE) and BioNTech (BNTX) for ages 16 and up.

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Previously, the vaccine won an emergency use authorization. With full approval, it can stay on the market after the pandemic ends and the companies can change its price. They can also market directly to consumers in the U.S.

Pfizer jumped over 3%, while BNTX stock soared nearly 10%. Pfizer stock has triggered the 20%-25% profit-taking rule from a 41.19 buy point of a cup with handle. Moderna (MRNA), whose vaccine is currently approved for emergency use, rallied 5%.

Growth Stocks To Watch

Diodes (DIOD) advanced nearly 3%, breaking out past a 91.09 buy point of a cup with handle in heavy trade. The stock pared its gains midday but remained above the entry. It’s in buy range up to 95.64. Earlier this month, the Texas-based chipmaker delivered a second straight quarter of triple-digit profit growth and sales growth above 46%.

Chip stocks rallied Monday, after Chinese regulators approved Analog Devices‘ (ADI) acquisition of Maxim Integrated (MXIM).

Maxim gapped up and soared more than 3% to clear a 105.59 buy point of a flat base, according to MarketSmith chart analysis. Shares are in potential buy range, which tops out at 110.87.

Analog Devices announced Monday that China’s State Administration for Market Regulation gave antitrust clearance for the Massachusetts-based chipmaker to buy Maxim. Analog Devices, which announced the $21 billion acquisition in July 2020, climbed 1.2%. The deal is expected to close this week.

Nvidia (NVDA) surged 4% in heavy volume to a new high. It’s on track for a third straight advance. Shares remain in buy range from a 207.43 entry. The chart can also be interpreted as a flat base with a 208.85 buy point, which Nvidia cleared Monday. The graphics chip designer is an IBD Leaderboard and IBD SwingTrader stock.

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Chip ETFs rallied. VanEck Vectors Semiconductor (SMH) and iShares Semiconductor (SOXX) rose more than 2% each to pop back above their 50-day moving average lines.

Bitcoin Tops $50K

The price of Bitcoin climbed more than 2% Monday morning, topping $50,000 for the first time in three months. The price of Bitcoin traded around $50,200 in early trade, according to Coindesk, before slipping below $49,600 in the afternoon.

The Grayscale Bitcoin Trust ETF (GBTC) rallied 3% early Monday, but pared gains to 1.1% in later trade. It remains about 31% off its all-time high reached on Feb. 19.

Dow Jones Movers

Intel (INTC), up 2%, also took part in the chip stock party. Other blue chip winners included Boeing (BA), Caterpillar (CAT), Chevron (CVX) and (CRM).

Chevron rose along with crude oil prices. West Texas intermediate surged nearly 6% to $65.58 a barrel. The oil giant’s stock is still well below its 50-day and 200-day lines. So are Boeing and Intel. Caterpillar is trying to reclaim its 200-day line, while Salesforce is approaching a 271.02 consolidation buy point.

Apple (AAPL) added 1%, on track for a third straight gain. The stock has moved back above a 148 trendline buy point. Apple shares hit an all-time high on Aug. 18 at 151.68 before reversing lower.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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