JUNE 23, 2026
Dow Jones Futures: Nasdaq Breaks Support. – (Stock.Adobe.com) generated with A.I.
Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. FedEx (FDX) and AI chip IPO Cerebras (CBRS) tumbled late on results.
The stock market rally saw sharp losses Tuesday among leading AI names amid a global sell-off and with Micron Technology (MU) earnings due late Wednesday. The Nasdaq closed below key support for the first time in over two months, even with SpaceX (SPCX) providing some support.
Outside of AI, Guardant HealthGH, FortinetFTNT, EzcorpEZPW are near buy points.
Late Tuesday, Google-parent Alphabet (GOOGL) rose slightly on news it’ll join the Dow Jones Industrial Average on June 29, replacing Verizon (VZ) on June 29.
Guardant Health stock is on Leaderboard. Micron stock, Guardant Health are on the IBD 50. Fortinet stock and Micron are on the IBD Big Cap 20. Ezcorp was Tuesday’s IBD Stock Of The Day. The video embedded in the article reviews Tuesday’s market action and analyzes Guardant Health stock, Fortinet and Ezcorp.
Dow Jones Futures Today
Dow Jones futures edged lower. S&P 500 futures rose a fraction and Nasdaq-100 futures climbed 0.15%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
FedEx, Cerebras Earnings
FedEx earnings beat views, but margins shrank. FDX stock fell solidly in overnight action, signaling a sharp move below the 50-day line and below an old buy point. Shares fell 3.5% to 317.24 on Tuesday.
New FedEx spinoff FedEx Freight (FDXF) will report for the first time as an independent company late Thursday.
Cerebras reported a larger-than-expected loss in its first post-IPO report, but revenue and sales guidance topped though the margin outlook was soft. The AI chip upstart also announced a new OpenAI deal. But shares dived in after-hours trading. CBRS stock rose 1% to 226.72 in the regular session. Shares spiked from the $185 IPO price to hit a record 386.34 in their May 14 debut, but closed well off highs. Cerebras hit a post-IPO low of 196.73 on June 5. Since then the AI chipmaker has tried to stabilize but hasn’t broken its downtrend, finding resistance at the new 21-day line.
Stock Market Rally
The stock market rally saw heavy AI-related losses Tuesday amid a global rout. South Korea’s Kospi index dived 10%, dominated by memory-chip giants Samsung and SK Hynix. Korean regulators are tightening margin controls.
The Nasdaq composite slumped 2.3%, below its 50-day line for the first time since April 7. The S&P 500 fell 1.4%, below its 21-day line and almost to its 50-day.
But the Dow Jones Industrial Average fell just 0.1% in Tuesday’s stock market trading, finding 10-day line support. The small-cap Russell 2000 lost almost 1%, but never touched its 10-day line.
The Nasdaq-100 index dived 3.3%, below its 21-day line. That’s after only falling 0.2% on Monday when the Nasdaq composite gave up 1.3%. The big divergences reflect SpaceX stock, which reversed higher from post-IPO lows, closing up 1% Tuesday, That’s after diving 16.4% on Monday.
The Direxion Nasdaq-100 Equal Weighted ETFQQQE shed 2.2% while the Invesco S&P 500 Equal Weight ETFRSP edged down 0.1%. Both just held their 21-day lines.
Micron stock plunged 13.2% ahead of Wednesday night’s earnings, with fellow memory giant Sandisk (SNDK) off 13.6%. More broadly, chips and AI hardware leaders had sharp losses after many rallied Monday.
Meanwhile, several medical groups, oil shippers, cybersecurity plays, banks and consumer names held up well or advanced.
U.S. crude oil prices fell 0.9% to $73.21 a barrel.
The 10-year Treasury yield dipped one basis point to 4.49%.
ETFs
Among growth ETFs, the CapForce IBD 50 ETFFFTY tumbled 4.2%. The iShares Expanded Tech-Software Sector ETFIGV edged up 1 cent, or 0.01%. The VanEck Vectors Semiconductor ETFSMH dived 7%. Micron stock is a major SMH holding.
ARK Innovation ETFARKK sank 2.2% and ARK Genomics ETFARKG lost 1.1%.
SPDR S&P Metals & Mining ETFXME plunged 3.75%. The Energy Select SPDR ETFXLE gained 0.7% and the Health Care Select Sector SPDR FundXLV popped 1.4%.
The Industrial Select Sector SPDR Fund (XLI) gave up 1.3%. The Financial Select SPDR ETFXLF was up 0.3%. The SPDR S&P Regional Banking ETFKRE advanced 1.6%.
Stocks Near Buy Points
Guardant Health stock rose 1.55% to 130.83, testing the top of a shelf pattern just above a cup base. The relative strength line is at record highs on a weekly chart.
Ezcorp stock popped 2.8% to 32.38, retaking the 50-day line, offering an early entry. The pawnshop operator has a 37.13 consolidation buy point, according to MarketSurge, with 34.83 another possible entry.
Fortinet stock climbed 1.8% to 148, continuing to hold at highs after a huge move following earnings in early May. FTNT stock has a 150.07 three-weeks-tight entry.
What To Do Now
Tuesday ‘s sharp sell-off in AI stocks is a reminder to not be too concentrated in a particular sector or theme, especially when other sectors are showing strength as well.
The Nasdaq breaking below the 50-day line is a negative sign.
Investors should look at their holdings, especially their AI plays, and see which held up the best and which broke below key moving averages. The latter may be names to lighten up on.
Keep working on watchlists, casting a wide net. Know your exit strategies. When the market is volatile, investors need to be more engaged and ready to add or reduce exposure.
Courtesy: Investor’s Business Daily
