Following Monday’s rally, the S&P 500 index futures seemed poised for yet another rebound. However, not only did the rally not materialize, the index surrendered all its gains and then some. In fact, the index (including the after-hours barrage), breached Monday’s low by 60 handles.
In a broad based decline, it was big cap tech doing most of the damage to the index. It was as if no one Wall Street wanted to be long into the mega cap earnings reports from Microsoft Inc. (NASDAQ: MSFT) and Alphabet Inc. (NASDAQ: GOOG). As it turns out, Microsoft’s beat was not big enough and Alphabet flat out missed.
With the index swooning 122.25 handles to close at 4170.50, and tanking another 29.75 handles to end the after-hours session at 4140.75, a test of the February low (4093.25) is a foregone conclusion. To find out what happens next, stay tuned to PreMarket Prep Plus.
The biggest gainer of the top components was the smallest loser, being Johnson & Johnson (NYSE: JNJ). For the session, the issue declined $1.33 or 0.07 percent to close at $184.68. It was the only top component that fell less than 1 percent on the day.
That was much better than the cash index’s decline of 2.81 percent.
Tesla Inc. (NASDAQ: TSLA) led the way on the downside by a wide margin. For the session, the issue swooned $111.60 or 11.2 percent to close $876.42.
PreMarket Prep Stock Of The Day: Tesla Inc. (NASDAQ: TSLA)
Major support level breached and major follow through to the downside. Read more on TSLA here.