In one of the most volatile sessions since March 2020, the bears prevailed in a big way. A midday pump turned into a late-afternoon dump. After rallying 136 handles off the premarket low, the index gave back almost all of those gains to close in the lower portion of the trading range. In addition to the weak close, there was more selling pressure in the after-hours market.
At this point, what may be the most concerning is the growing number of companies that are declaring that they would no longer be doing business in Russia. That on top of the upcoming slowdown in Europe does not bode well for Q1 earnings or GDP for these multinationals. In addition, the rampant rise in the materials used in order to produce goods creates an even more tenuous situation. With higher interest rates looming to combat inflation and slowing growth, the dreaded word Stagflation has to enter the conversation.
For the session, the S&P 500 index futures shed 29.75 handles to close at 4168.75. That marks the lowest close for the recent slide and the lowest close since July 2021.
Benefits from the push to “clean energy” enabled Tesla Inc. (NASDAQ: TSLA) to be the biggest gainer of the top components of the index. For the session, the issue gained $19.82 or 2.5% to close at $824.40.
That was over three percent better than the cash index’s decline of 0.71%.
UnitedHealth Group Inc. (NYSE: UNH), which snapped a seven-day winning streak on Monday, was the biggest loser of the top components. For the session, the issue declined $13.41 or 2.75% to close at $273.46.
PreMarket Prep Stock Of The Day: Dick’s Sporting Goods (NYSE: DKS)
Price action following the Q4 beat coupled with much lower FY22 guidance sets the stage for a “lunch bet” between the hosts of the show. Read more on DKS here.