After 11 sessions of chopping back and forth in a large trading range, the S&P 500 index took a major step in resolving the move to the upside.
Aided by several banks posting solid Q3 beats, the buying spree extended into all of the top components in the index. Even technology issues, which have been riddled the last few weeks over the fear of higher interest rates, which would diminish their future earnings, caught a bid.
Those who thought the gains in the premarket were overdone (over 40 handles at the premarket high), had another thing coming. It took the index 30 minutes into the session to finally clear the premarket high (4399) and after that, there was no stopping it.
It easily sliced through the pair of highs from last Friday and Monday at 4407 area and then took out last week’s high (4421.50) and was searching for willing sellers. A late-day retreat back to old resistance found more buyers and rallied into the close. In fact, the index continued to rally after the cash close, adding another 6 handles (4435) as of 5:00 PM EST (end of after-hours trading).
At the conclusion of the cash session, the futures gained 74 handles to close at 4429, which is the highest close since September 27, when it closed at 4433.
Nvidia Corp (NASDAQ: NVDA) was the top component with the biggest increase adding $8.07 or 3.9% to close at $217.46. That was over double the cash index’s gain of 1.71%.
The biggest loser of the top components was the smallest winner. That being Johnson & Johnson (NYSE: JNJ), which gained $0.91 or 0.57% to close at $160.11.
PreMarket Prep Stock Of The Day: Bank Of America (NYSE: BAC)
It took nearly 14 years, but Bank Of America finally traded over $45. Read more on BAC here.