The upward momentum from the last hour of Friday’s session followed through nicely in Monday’s session. However, the bulk of the gains were made during the premarket session with the bears making only one attempt to derail the rally. That was heading into lunchtime and was easily thwarted by the bulls, well above the premarket low.
The primary catalyst for the gain in the S&P 500 index futures was the outsized move to the upside in Tesla Inc. that spilled over into other issues in the mega cap technology sector.
From 1:30 PM EST on, the index traded in a narrow seven-handle range, making several attempts to make new highs for the day that all came up just shy.
The end result was a healthy gain of 28.25 handles at the closing price of 4539.50. That comes in just under last Tuesday’s close of 4552.
Among the top components, Tesla Inc. (NASDAQ: TSLA) was far and away the biggest winner of the top components. The issue surged $25.08 or 10.1% at the closing price of $273.58, following an upgrade and outrageous revenue forecast from Morgan Stanley’s Adam Jonas.
This performance was nearly 10% better than the cash index’s advance of 0.67%.
Conversely, the chip sector faced some heat, with NVIDIA Corporation (NASDAQ: NVDA) feeling the brunt of it. The tech giant was the biggest loser among the top components for the second day in a row, declining by $3.94 or 0.86%, to settle at $451.78.