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Conventional wisdom would say with earnings misses from two of the top three components of the S&P 500 index and a 0.75% hike in the Federal Funds Rate, that the index would be down. Wrong.

In fact, just the opposite as the index had one of its best sessions in a month by gaining 101.25 handles to close at 4024.50. That marks the highest close for the rebound and the highest close since the index ended the day on June 9 at 4017.50.

It all started in the after-hours session on Tuesday, when the index briefly traded under the close and caught a sustained bid to end the after-hours session 16-handles above the mark. The buying spree continued in the premarket and continued into the regular session.

The expected outcome from the Fed meeting added fuel to the fire and put the bulls back in full control of the index for the first time in a long time.

Despite a Q2 miss for both metrics, Alphabet Inc. (NASDAQ: GOOG or GOOGL) was the biggest gainer of the top components of the index. For the session, the issue advanced by $8.16 or 7.7% to close at $113.60.

That was nearly triple the cash index’s gain of 2.62%.

The only, and therefore the biggest loser of the top components was Johnson & Johnson (NYSE: JNJ). The issue declined by $0.48 or 0.28% to close at $173.20.


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