Investors are always looking for an exact reason why the market has sharp declines. Many experts will say it is all about the Fed/inflation/higher interest rates, others will say it’s all about valuations coming back into vogue. Others will say it is all about the pandemic and the forthcoming new strains of the virus that will cripple the economy.
The aforementioned factors all played a role in the recent retreat from all-time highs, but when you mix in a potential conflict with Russia, that is when it gets ugly as we witnessed today.
In fact, the low for the day in the S&P 500 index futures (4212.75) was made near the same time the US Department of Homeland Security warned of potential Russian cyberattacks amid tensions.
While that explains the reason for the sharp intraday decline, the question that remains was the wicked rebound off that low the sign of a major bottom.
After being in the red by nearly 180 handles (4390 close vs. 4212.75), the index ended green for the session by 13.75 handles at 4403.75.
The biggest gainer of the top components of the index was Meta Platforms Inc. (NASDAQ: FB). After reaching its lowest levels since March 2021 ($280.01), the issue rebounded to add $5.54 or 1.8% to close at $308.71.
That far exceeded the cash index’s gain of 0.28%.
The biggest loser of the top components was Tesla Inc. (NASDAQ: TSLA), which has closed in triple digits three days in a row for the first time since October. For the session, the issue declined by $13.90 or 1.47% to close at $930.