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Tuesday’s closing price (4678.25) turned out to be a key level in the S&P 500 index futures in Wednesday’s session. In premarket trading, the index peaked just above that level at 4680.25 and bottomed at 4656.75 heading into the open of the regular session.

Off the open, the bulls successfully defended that low and the index staged a rebound. However, the morning rally could only clear the close by a few ticks, reaching 4678.75 and the rout was on. 

Perhaps it took some time for investors to digest that wholesale prices made their biggest gain in price since 1990 when the Producer Price Index data was revealed at 8:30 AM EST. In fact, the 8.6% rise in wholesale prices, year over year in October, was tied for the highest ever.

Adding to Wall Street worries is the possible delay or cancellation of the infrastructure bill due to mounting inflationary concerns.

The index struggled to hold in the 4670 handle and gave way around 12:30 PM EST. The index briefly paused at the premarket low, and just as the index ripped through the remainder 4625-4650 area on the way up, it sliced through them easily on the way back down.

With no daily lows in place until the five-day low of 4613, big buyers were scarce. As a result, the index did not bottom until heading into the final hour of the session at 4625.25 and rebounded. 

The index was able to trim some of its losses, declining 36.25 handles to close at 4642.

After slipping into triple digits for the first time since October 25, Tesla Inc. (NASDAQ: TSLA) sharply rebounded to post the biggest gain of the top components. For the session, the issue added $44.45 or 4.3% to close at $1067.95.

That was much better than the cash index’s decline of .8%.

Nvidia Corp (NASDAQ: NVDA) was the biggest loser of the top components and was lower for the second day in a row. For the session, the issue declined $12.08 or 3.92% to close at $294.59.


Wednesday’s With Wedbush: Moshe Katri, FinTech/Payments Analyst

What is next for the sector after disappointing Q3 results from Paypal Holdings Inc. (NASDAQ: PYPL) and Coinbase Global Inc. (NASDAQ: COIN). Read more about PYPL and COIN here.