In a seemingly resilient move, the stock market rally pushed forward on Tuesday, shrugging off concerns over higher-than-expected core Consumer Price Index (CPI) inflation data. Notably, big-cap tech companies such as Nvidia and Oracle played a significant role in leading the market to reach all-time closing highs for the S&P 500 index.

Although market breadth appeared weak, the S&P 500 displayed strong gains in the wake of a solid session, buoyed by positive earnings reports and optimistic comments. Joining the ranks of top performers were ServiceNow, Shockwave Medical, Archrock, Symbotic, and Microsoft, all of which flashed buy signals during the day. Investors could seize the opportunity to make incremental purchases, but they should be aware that this window may close swiftly.

Early on Wednesday, Dollar Tree and Williams-Sonoma are expected to be in focus. Nvidia, ServiceNow, and Microsoft demonstrate strong performance and are listed on prominent market trackers such as IBD Leaderboard, SwingTrader, and IBD Long-Term Leaders, showcasing their market prowess. Furthermore, Nvidia, Symbotic, and Shockwave stock can be found on the IBD 50, and Archrock was hailed as the IBD Stock of the Day on Tuesday.

Dow Jones futures experienced minimal changes, while S&P 500 futures remained flat, and Nasdaq 100 futures exhibited slight stability. However, it is crucial to remember that overnight activity in these futures markets does not necessarily translate into actual trading outcomes during regular stock market sessions.

The Dow Jones Industrial Average witnessed a 0.6% climb on Tuesday, surpassing the 21-day and 10-week moving averages, thus reclaiming the 39,000 level. Similarly, the S&P 500 index gained 1.1% and set a new closing high after briefly dipping below the 10-day line. The Nasdaq composite rebounded impressively by 1.5%, bouncing back from near the 21-day line and nearly reaching a new closing high.

Despite the market's upward trajectory, decliners slightly surpassed advancers, as evidenced by the small-cap Russell 2000 experiencing a fractional decline for the third consecutive day. On the other hand, the Invesco S&P 500 Equal Weight ETF climbed by 0.3%, achieving a record close. The First Trust Nasdaq 100 Equal Weighted Index ETF also rallied by 0.8%, although it lagged behind the Nasdaq 100's 1.5% leap. In previous sessions, however, both these ETFs displayed better performance.

Nvidia, alongside various AI chip companies, has been a driving force behind the rally but is significantly extended. Conversely, certain big-cap software companies, including ServiceNow and Microsoft, have been consolidating for some time. Oracle's earnings report and positive outlook provided a much-needed boost to the software sector.

Medical products firms like Shockwave stock and Dexcom are garnering attention, as are several energy services companies like Archrock stock. Banks and payment stocks also appear to be performing well.

While the Nasdaq and S&P 500 are not yet extended, the lack of a substantial pause or pullback creates potential downsides. The 10-year Treasury yield increased by 5 basis points to reach 4.15%.

Among various growth ETFs, the iShares Expanded Tech-Software Sector ETF rebounded by 2.2%, with major holdings including Microsoft, Oracle, and ServiceNow. The VanEck Vectors Semiconductor ETF also experienced a solid rally of 3.2%, with Nvidia stock claiming the top position within the ETF.

ARK Innovation ETF, focusing on more speculative stocks, witnessed a slight decline of 0.8%, while the ARK Genomics ETF slumped by 1.6%. Additionally, the SPDR S&P Metals & Mining ETF retreated by 1.7%, while the Global X U.S. Infrastructure Development ETF rose by 0.6%. The U.S. Global Jets ETF faced a decline of 2.15%, while the SPDR S&P Homebuilders ETF climbed by 1.4%. The Energy Select SPDR ETF slightly dipped by 0.2%, and the Health Care Select Sector SPDR Fund advanced by 0.5%. The Industrial Select Sector SPDR Fund edged up by 0.4%, and the Financial Select SPDR ETF gained by 0.4%, nearing all-time highs set in early 2022. The SPDR S&P Regional Banking ETF experienced a decline of 1%.

ServiceNow stock surged by 4.3% to $789.56, rebounding from its 50-day line and breaking a downtrend, potentially signaling an early entry opportunity for investors. Shockwave stock rose by 2.7% to $264.70, breaking the trendline of a short consolidation, while Symbotic stock climbed by 3.15% to $46.43, nearing a potential trendline entry. Microsoft stock advanced by 2.7% to $415.01, rebounding from the 10-week line. Archrock stock rose by 1.9% to $18.41, extending Tuesday's bounce, and Nvidia stock jumped by an impressive 7.2% to $919.13 after experiencing recent volatility.

The stock market rally's resilience is commendable, but it poses challenges for new bases to form. While Nvidia and other AI chip names remain dominant, sectors such as software, medical products, and energy hold promise for investors seeking new opportunities. It is crucial to look beyond the current hot names and identify emerging prospects before they become overextended. Staying informed with daily updates on market trends and leading stocks is imperative for investors to navigate this dynamic landscape successfully.

Please follow Ed Carson on Threads (@edcarson1971) and on Twitter (@IBD_ECarson) for comprehensive stock market updates and more insightful analysis.