The S&P 500 index futures tendency to rally ahead of Federal Reserve bank meets and interest rate announcements remains intact. Despite continued concerns over the stability of the US banking system, many of the issues in that sector were able to rebound.
That, coupled with a rebound from oversold conditions in the energy and industrials enabled the index to be in the green for the second day in a row.
Despite trading in the red during the premarket session, the index went only one tick below it during the regular session, mounting a sustained rebound. In fact, the index ended the day just below the daily high as it tacked on 36 handles with a closing price of 3983.
In the overnight session, the bulls will be aiming for a breach of last week/Friday’s high (4009.50) as there is limited daily resistance above it. On the downside, the index may find buyers ahead of today’s intraday low/Friday’s close (3946.75/3947).
As investors turned to value stocks, Berkshire Hathaway Class ‘B’ (NYSE: BRK.B), the king of the sector, was the biggest winner of the top components of the index. For the session, the issue gained $7.55 or 2.57% at the closing price of $301.06.
That was almost triple the gain of the cash index, which added 0.89%.
After last week’s remarkable run, profit-takers came into Microsoft Corp (NASDAQ: MSFT). For the session, the issue declined by $7.20 or 2.6%.
