When the S&P 500 index made a new low and closing low for the recent decline on Tuesday, it was hard to be opportunistic about a big turnaround on Wednesday. However, a combination of factors, including a weaker dollar, a rally in treasury bond futures and oil tanking all contributed to the outsized gain. In fact, it was the best day in the index in nearly a month when it tacked on 85.50 handles on August 10.
The premarket trading did not give any indication as the index breached Tuesday’s low and was in the red to begin the regular session. However, when Crude really went into reverse, the index caught a relentless bid. The pace of the rally accelerated once the index breached the premarket high.
It went to clear Tuesday’s high by a wide margin reaching 3988.75 but backed off to end the day higher by 69.50 handles at 3980.00.
For the second day in a row, Tesla Inc. (NASDAQ: TSLA) was the biggest winner of the top components. For the session, the issue advanced by $9.28 or 3.4% to close at $283.70.
The only issue of the top components that was in the red was Exxon Mobil (NYSE: XOM) which was instigated by a steep decline in Crude Oil futures. For the session, the issue declined by $0.80 or 0.84% to close at $94.15.