After a four-day losing streak was interrupted on Monday, the S&P 500 index futures were lower for the second day in a row. That brings the series of losses to six times in the last seven sessions.
Premarket trading and the regular sessions were polar opposites. For a majority of the premarket session, the index traded in the green, at one point higher by nearly 20 handles. However, mega cap technology, especially chip stocks, were battered as a result of the price action in Super Micro Computers Inc. (NASDAQ: SMCI) following its Q2 beat but tepid guidance.
The index did find support just under Tuesday’s low (4482), falling to 4478.25 before staging a solid rebound. The rebound lost steam heading into the final hour just under Tuesday’s close and faded into the final print.
The end result was a decline of 32.75 handles at the closing price of 4485.75. That marks the lowest close of the recent decline and the index’s lowest close since July 11.
Among the top components, only one was in the green and that was Exxon Mobil (NYSE: XOM), therefore the biggest winner. Aided by another leg higher in Crude Oil, the issue added $1.83 or 1.7% at the closing price of $109.56.
That was over two percent better than the cash index’s decline of 0.70%.
On the downside, Nvidia Corp (NASDAQ: NVDA) was the biggest loser of the top components for the second day in a row. The issue was under extreme selling pressure after it was decimated following its Q2 report and tepid guidance. For the session, the issue declined by $20.10 or 4.5% at the closing price of $425.54.