There was strong follow-through in Thursday’s premarket trading after a strong after-hours session on Wednesday. That rally was fueled by Q1 beats from Tesla Inc. (NASDAQ: TSLA) and American Airlines Group (NASDAQ: AAL).
While the mainstream media will attribute the reversal to hawkish comments from the Federal Reserve Chairman Jerome Powell, regarding the pace of interest rates hikes, that only added to downside momentum. Instead, the decline was originally instigated by some tough talk from President Joe Biden with respect to the war in Ukraine.
Those comments about the escalation of US involvement in the battle had investors taking profits after the robust rally on Tuesday and the strong start to today’s session.
In one of the ugliest sessions of the year, the index went from over 50 handles in the green off the open to finishing the session in the red by 65 handles at 4390.50.
There was only one issue in the green of the top components of the index, Tesla Inc. (NASDAQ: TSLA) following a strong Q1 report. For the session, the issue added $31.58 or 3.2% to close at $1008.78. It should be noted that the close was over $83 off the intraday high of $1092.22.
MetaPlatforms Inc. (NASDAQ: FB) was the biggest loser of the top components of the index for the second day in a row. It has shed nearly $20 over the past two sessions, with today’s decline of $12.35 or 6.2%.
PreMarket Prep Stock Of The Day: American Airlines Group Inc. (NASDAQ: AAL)
Following a robust rally over the last few weeks, profit takers come in after it announces a Q1 beat and higher Q2 sales guidance. Read more on AAL here.