The S&P 500 index futures started Thursday with an air of optimism, flirting with all-time highs during the premarket hours.
February’s PPI hit the news at 8:30am EST, coming in far above expectations at 0.6% (vs. 0.3% expected) for PPI and 0.4% (vs. 0.2% exp.) for Core PPI. These hot numbers possibly signal fewer rate cuts than previously expected this year.
Despite the alarming PPI figures, bulls momentarily countered the ensuing selloff, maintaining a semblance of green on the board as the regular session beckoned. However, this resilience was short-lived; a bearish blitz ensued after the first 15 minutes of trading, rapidly eroding about 30 handles from the index.
This descent established a new resistance near the previous day’s support in the low 5220’s, challenging bulls at every attempt to reclaim lost ground. The session was punctuated by bear-driven selloffs, pushing the futures to continually lower depths, despite occasional bullish resistance.
In a characteristic last-half hour rally, bulls clawed back 30 handles, yet the day still closed down 14.50 handles at 5218.
Alphabet Inc Class C (NASDAQ: GOOG) stood as a beacon for investors, clinching the title of the day’s most significant gainer among top index components. The tech giant’s shares advanced $3.57 or 2.54%, closing at $144.34, as investors rallied behind one of the few mega caps showing resilience.
That performance was over 2 percent better than the cash index’s decline of 0.20%.
Conversely, Tesla Inc (NASDAQ: TSLA) continued its downward trajectory, marking its position as the session’s most significant decliner for another day. Shedding $6.98 or -4.12%, the issue closed at $162.50.
