On both Friday and Monday, the much higher opening of the regular session in the S&P 500 index was faded. Following a weaker-than-expected CPI number that boosted the index, investors were confronted with another “fluff” open and it was treated the same way as it was in the prior two sessions.
Unlike both of those sessions, the premarket high was not breached, with the index coming up shy, only reaching 4477.25 compared to the premarket high of 4479.50. Within the first half-hour of the session, the index had surrendered 20 handles of gains and was in the red. Things only got worse.
The index went on to breach Monday’s low (4434.50), falling to 4425.25 before mounting a rebound. A late-round of short-covering helped trimmed the losses into the close. However, the technical damage was still substantial, as the index declined 25 handles to close at 4434.50. That marks the lowest close since the index closed at 4427 on August 20.
The hint of lower rates for longer inflicted the most damage on one of the index’s top components, JP Morgan Chase & Chase Co. (NYSE: JPM). While the index declined 0.57%, the issue shed $2.79 or 1.75% to close at $157.07.
Microsoft Corp (NASDAQ: MSFT) ended a three-day losing streak to be the bright spot of the top components. For the session, the issue gained $2.80 or 0.97% to close at $299.79.
PreMarket Prep Stock Of The Day: Oracle Corp (NYSE: ORCL)
Oracle being Oracle with another post-earnings dip.
