Wednesday’s session for the S&P 500 index futures reflected a pronounced shift in investor sentiment, diverging from Tuesday’s post-CPI data rally to embrace a broader sector rotation.
Despite opening slightly above flat, the market quickly dipped into negative territory, signaling an early advantage for bears. However, the descent was short-lived as bulls established a base around the 5230 mark, momentarily flipping the session back to green, post-lunch.
This resurgence was tapered by resistance near the previous day’s highs, leading to a notable pullback driven primarily by the underperformance in tech/growth sectors. Contrarily, value stocks like Visa, JPMorgan Chase, Berkshire Hathaway, ExxonMobil, Eli Lilly, and even Coca-Cola played a role in tempering the session’s losses.
The day’s narrative was also influenced by rising treasury yields and commodity prices, fueling the observed rotation from high-flying tech stocks to more traditional value sectors. Despite a late attempt by bulls to erase the day’s deficits, the session closed in the red, marking a modest retreat of 8.75 handles to finish at 5232.50.
It wasn’t all bad news for the tech sector, as Alphabet Inc Class C (NASDAQ: GOOG) stood out as Wednesday’s most significant winner among top index components. The search giant gained $1.15 or 0.82% to close at $140.77.
This advancement outpaced the broader market’s minor downturn of 0.16% by nearly one percent.
Conversely, Tesla Inc (NASDAQ: TSLA) bore the brunt of the day’s sell-off, declining $8.06 or 4.54% to close at $169.48, highlighting the struggle with tech-involved components amid shifting market dynamics.
