Three day weekends often produce outsized moves the following Tuesday. Investors were lulled to sleep by Friday’s sleepy close, which ended just off the highs of the intraday session.
The combination of geopolitical concerns arising from Putin’s speech over the long weekend and some cautious guidance from retailers was too much to overcome.
The substantial decline in premarket trading set the stage for the route in the regular session. Once the index was unable to clear Friday’s (last week’s) low off the opening, the pace of the decline accelerated. As evidenced by the daily charts, there was no support until the index’s January 31 low (4007.50), with the low being made at 4002.
Interestingly, the index ended the session near the aforementioned low with a closing print that was lower by 81.75 handles at 4005.75.
The biggest winner of the top components of the index was the smallest loser, Exxon Mobil (NYSE: XOM). For the session, the issue declined by $0.11 or just a fraction of a percent with a closing price of $111.17.
That was much better than the cash index’s decline of 2%.
Tesla Inc. (NASDAQ: TSLA) was the biggest loser of the top components of the index. For the session, the issue declined by $10.94 or 5.26%.