It almost seems like the participants in premarket trading know something the rest of the world does not. For example, after Friday’s tepid close in the S&P 500 index futures, a major rally off Sunday’s night open was not a foregone conclusion.
However, the index never reached Friday’s closing price early on (4694.50), only reaching 4695.25 and unlike Friday, had no problem trading and holding over 4700. Just after 9:00 AM EST, when it was announced that Jerome Powell would return as Chairman of the Federal Reserve Bank, the index had another jolt higher.
Off the open of the regular session, the index made quick work of the former all-time high from Friday (4723.50) and bested that level by a wide margin, reaching 4740.50 and reversed course.
Perhaps in a case of too much, too fast, the index surrendered most of its gains around Noon EST. It was difficult to identify a catalyst for the rapid retreat, but it did coincide with the announcement that Biden was preparing to announce the release of oil from the nation’s SPR in concert with several other countries as soon as tomorrow.
After a brief dip under 4700, bulls regained control but the bears came roaring back. Perhaps instigated by a large sell imbalance, the index had one of its worst 45 minutes in months. During that time the index swooned from the 4730 area close in the red by 14.50 handles at 4680. That was 60.50 handles off the all-time high made earlier at 4740.50.
JP Morgan & Co (NYSE: JPM) was the biggest gainer of the top components. For the session, it added $3.43 or 2.15% to close at $164.35.
That was much better than the cash index’s decline of 0.32%.
Amazon.com (NASDAQ: AMZN) was the biggest loser of the top components. It declined in the session by $104 or 2.8% to close at $3572.57.
PreMarket Prep Plus Monday Segment: “Briefing With Brent”
Brent Slava, head of the Benzinga Pro Newsdesk joined the show to preview the week and discuss a few consumer companies in the EV space. Read more about the Briefing here.