When your catalyst for the rally in premarket trading ceases to be a catalyst, then look out on the downside. Although it may be subtle, Elon Musk’s Twitter poll over the weekend suggested he would step down as CEO of Twitter, giving a much-needed boost to Tesla Inc. (NASDAQ: TSLA) and giving a boost to the issue and index as well.
However, when the attempted rally off the opening faded in Tesla, so did the index. While Tesla went on to make a new 25-month low, the weakness in other mega-cap tech stocks sealed the fate of the index for the day.
Once the index breached last week’s 3855.25 for good, the pace of the decline accelerated. Unfortunately, since the index has fallen into an area with limited daily support until 3800, it was difficult to nail the intraday low at 3827.50.
A rally in the final fifteen minutes helped trim the losses to 33.50 handles with a closing price of 3845.50.
JP Morgan Chase & Co. (NYSE: JPM) was the biggest gainer of the top components of the index. For the session, the issue added $0.77 or 0.6% to close at $130.06.
That was much better than the cash index’s decline of 0.86%.
Amazon.com (NASDAQ: AMZN) was the biggest loser of the top components of the index. After declining by $2.94 or 3.4%, the issue is trading at its lowest level since March 2020.
PreMarket Prep Stock Of The Day: Apple Inc. (NASDAQ: AAPL)
Breaches major support and tumbles. Read more on AAPL here.