When one of the top components of the S&P 500 experiences a selloff, it can drag down the rest of the index. Even more so when it is the very top component itself, Apple Inc. (NASDAQ: AAPL).
The day started with some weakness, as the S&P 500 futures index broke below the psychological level of 4500 in the overnight session. This level acted as a resistance through the premarket session, setting a somewhat gloomy stage for the rest of the day. Apple’s news hit the market like a sledgehammer. Reports emerged that the Chinese Government had prohibited officials from using iPhones for/at work, causing Apple’s stock to take a nosedive. This, coupled with a weaker semiconductor industry, pulled down the index, most notably in the tech and consumer discretionary sectors.
But all was not doom and gloom. The index found support around the 4450 area and clawed its way back to recover almost half of the day’s losses by the afternoon. The session saw this late resurgence across many issues as well. When the dust settled, the index ended the day at 4471.50, a loss of 31 handles.
Among the top components, Exxon Mobil Corp. (NYSE: XOM) benefited from a rise in crude oil prices and emerged as the day’s biggest winner. The energy titan advanced by 0.86%, or $0.98, to close at $114.51.
This performance eclipsed the day’s general downturn, beating the cash index’s decline of 0.70%.
Conversely, Apple Inc. (NASDAQ: AAPL) had a day to forget, being the biggest loser of the top components. The stock plummeted 3.58% or $6.79, settling at $182.91 by the market close.