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Based on the follow-through in the S&P 500 index futures in Monday’s premarket trading, the index was poised to post a new all-time closing high (above 4694.25). However, when more liquidity came in at 9:30 AM EST, that was not the case. 

In fact, the index began to taper off from its high (4697.50) in the preceding minutes ahead of the opening bell. As a result, the index was unable to come close to the premarket high, only reaching 4692.75, before turning lower for good.

The index was still firmly in the green until shortly before noon EST. At that time, former 

New York Federal Chief Dudley stated a far more hawkish Federal rate rise is forthcoming. He predicts the Fed will have to raise the short-term target rate from near Zero to between 3-4%. In the absence of any bullish catalysts, bears seized on the statement.

That instigated a swift decline from the mid 4680 handle down to the low of the session at 4667. There were a few more attempts for even lower prices to no avail. In the final hour, the index staged a rebound to recoup some of the earlier losses. 

A late flurry of buying in the final minute nudged the index to 2 tick gain to end the session at 4678.75. That makes the third close in the last five sessions in the 4678.50 area. 

Meta Platforms Inc. (NASDAQ: FB) was the biggest gainer of the top components of the index. After adding $13.15 on Friday, the issue gained another $6.67 or 1.96% to close at $347.56.

That was much better than the cash index’s flat performance. 

Tesla Inc. (NASDAQ: TSLA) was the biggest loser of the top components of the index. The Elon Musk “overhang” in the issue has tempered the bull’s aggressive posture. The issue was lower for the third session in a row and has been lower in six of the last seven sessions since Musk began to sell 10% of his stake.

For the session, the issue declined by $20.03 or 1.9% to close at $1013.39. 


PreMarket Prep Plus Monday Segment: “Briefing With Brent”

A preview of the week ahead with Brent Slava, head of the Benzinga Pro Newsdesk. Read the briefing here.