For the fifth day in a row, the S&P 500 index futures made a higher high, a higher low, and closed at a new all-time high.
Leading up to the Federal Reserve Bank announcement, the S&P 500 index futures was tight 7.5 handle trading from 4613-4620.50. However, following the announcement, the index did what it does most of the time, blast higher.
The index barely paused at the former all-time high (4627) and any retreat after the announcement that came near Tuesday’s close 4623.50 was short-lived. The pace of the rally accelerated during Jerome Powell’s Q&A, when he told investors exactly what they wanted to hear. That the economy was still expanding and inflationary pressures arising from supply chain constraints were abating.
For the session, the index added 29 handles to close at 4652.50.
All but one of the top components of the index were in green. Back on the biggest gainer of the top components, who flipped the script from Tuesday, when it was the biggest loser. For the session, the issue added $41.79 or 3.6 to close at $1213.79.
That dwarfed the cash index’s gain of .65%.
The only top component in the red was Johnson & Johnson (NYSE: JNJ), which took a breather from its unusual move from Monday’s low ($159.40) to Tuesday’s high ($166.98). On a closing basis, the price action was a not so dramatic rally from $163.02 to $165.59.
For the session, the issue declined by $0.53 or .32% to close at $165.06.
Wednesday’s With Wedbush: Sahak Manuelian, Managing Director: Head Of Equity Trading
Excellent commentary on sector rotation, interest rates, and the continuation of the roaring bull market. Read more here.