The math is simple. When the top four components of the S&P500 index, all mega-cap technology companies, are down between 0.92-3.1%, the index is doomed for the session. To make matters worse, two of those four companies (Apple Inc. (NASDAQ: AAPL) and Amazon.com (NASDAQ: AMZN) made new lows for the move.
The bulls were able to put up a fight, keeping the index in the green for the early part of the session. However, the bears took control and then took out Wednesday’s low (3837.25) with ease. The lunchtime rebound exceeded that level but not for long.
The selling pressure continued until the closing bell and the index was unable to distance itself from it, in the final few minutes. For the session, the index skidded 47.50 handles to close at 3807.50. That marks the lowest close for the index since November 3, ending that session at 3799.75.
The biggest winner of the top components was JP Morgan Chase & Co. (NYSE: JPM). For the session, the issue gained $0.72 or 0.55% to close at $132.46.
That was almost 2% better than the cash index’s decline of 1.20%.
The biggest component of the index was the biggest loser, Apple Inc. (NASDAQ: AAPL). For the session, the issue declined by $3.99 or 3.1% to close at $126.04. That marks its lowest close since June 2021.