Dow Jones futures rose slightly Wednesday morning, along with S&P 500 futures and Nasdaq futures. Meta Platforms (META) announced a big AI infrastructure deal with Nvidia (NVDA), lifting NVDA stock while hitting Advanced Micro Devices (AMD) and Broadcom (AVGO).

The stock market rally tumbled Tuesday morning, but rebounded for slim gains.

GE Aerospace (GE,) Monster Beverage (MNST), Five Below (FIVE), Nextpower (NXT) and Krystal Biotech (KRYS) are flashing buy signals with their relative strength lines hitting new highs, a bullish sign.

Krystal Biotech stock is on the IBD Leaderboard watchlist. Five Below stock and Krystal Bio are on the IBD 50. Halozyme stock is on IBD Sector Leaders. Monster Beverage was Tuesday's IBD Stock Of The Day.

The video embedded in the article reviews Tuesday's market action and analyzes GE Aerospace stock, Nextpower and Five Below.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures advanced 0.4% and Nasdaq 100 futures gained 0.5%.

The 10-year Treasury yield edged up to 4.06%. Crude oil futures rallied nearly 3%.

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

Meta, Nvidia Team Up On AI Infrastructure

Meta will deploy Nvidia chips across its AI data centers. That includes CPUs as well as Nvidia's Blackwell and upcoming Rubin GPUs.

Meta stock were little changed early Wednesday. Shares continued to grind lower in Tuesday, in large part on AI spending concerns.

Nvidia stock climbed 2% in extended trade. On Tuesday, shares rose 1.2% to 184.97, just reclaiming its 50-day line. Nvidia earnings are due next week.

AMD stock fell 2% in premarket trade while Broadcom edged lower. Both closed below their 50-day lines.

Arista Networks (ANET) declined modestly, though still above its 50-day line. Nvidia will also deploy its Spectrum X-Ethernet products at Meta, cutting into Arista's core business.

Key Earnings

Halozyme Therapeutics (HALO), Palo Alto Networks (PANW) and Toll Brothers (TOL) reported late Tuesday.

Halozyme reported a surprise loss on a one-time factor, but revenue beat. HALO stock wavered overnight. Halozyme cleared a 75.59 handle buy point on Feb. 3 and has been trading around the top of the consolidation.

Palo Alto earnings beat late, but the cybersecurity firm guided low on EPS. PANW stock declined solidly before the open. Shares have sold off hard for several months in sync with the software sector slide.

Toll Brothers topped quarterly EPS views, though home orders missed targets. Shares of the luxury homebuilder rose a fraction in extended trade. TOL stock is modestly extended from a base.

Stock Market Rally

The stock market rally got off to a rough start Tuesday, with the Nasdaq and S&P 500 hitting fresh multimonth lows. But the indexes rebounded to close slightly higher.

The Dow Jones Industrial Average rose about 0.1% in Tuesday's stock market trading while the small-cap Russell 2000 edged higher, both closing above their 21-day lines after undercutting that level in the morning. The S&P 500 index and the Nasdaq composite advanced 0.1%, both still below their 50-day moving averages.

The Invesco S&P 500 Equal Weight ETF (RSP) dipped 0.2%, still near highs.

The Direxion Nasdaq-100 Equal Weighted ETF (QQQE) declined 0.3%, but off lows.

Airline stocks were top performers, led by Southwest Airlines (LUV). Software stocks resumed their slump, while gold, silver and copper plays fell along with underlying metals prices.

U.S. crude oil prices fell 0.89% to $62.33 a barrel.

The 10-year Treasury yield was little changed at 4.05%, erasing modest losses after plunging last week.

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) was down 2.2%, with Palo Alto stock a top-five holding. The VanEck Vectors Semiconductor ETF (SMH) lost a fraction. Nvidia stock is the dominant SMH holding with AMD and Broadcom key positions as well. Cadence Design stock is in both IGV and SMH.

ARK Innovation ETF (ARKK) edged higher and ARK Genomics ETF (ARKG) popped 2%.

SPDR S&P Metals & Mining ETF (XME) sank 2.3%. U.S. Global Jets ETF (JETS) ascended 2.8%. SPDR S&P Homebuilders ETF (XHB) fell 1%, with Toll Brothers stock a member. The Energy Select SPDR ETF (XLE) declined 1.1% and the Health Care Select Sector SPDR Fund (XLV) dipped 0.2%.

The Industrial Select Sector SPDR Fund (XLI) climbed 0.5%, with GE Aerospace stock the No. 1 holding. The Financial Select SPDR ETF (XLF) rose 1%.

What To Do Now

The stock market showed resilience Tuesday, but it's still a divided rally. Choppy sideways action with sector rotations is dangerous, but buying opportunities lure investors in.

If you are making buys in the current market, you have to be nimble and ready to cut losses quickly. Keep working on watchlists.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.