First, the market has to stop going down, then it has to calm down, and then it needs a catalyst to move higher. The S&P 500 index certainly has had its share of down days and weeks since early April, it was able to stabilize on Monday on Tuesday after Friday’s stunning reversal and Jerome “Pumping” Powell provided the catalyst today with the release of the minutes from the last FOMC meeting.
To be honest, there was nothing super bullish in the notes, but that is the way investors reacted to it favorably. What happens next is what really matters. The last time the index had a pump after the Federal Reserve Bank meeting, the index acted favorably and then completely fell apart the next day.
In a back and forth session until late in the day, the index added 36.25 handles to close at 3976.75.
Not that it matters now, but Nvidia Corp (NASDAQ: NVDA) was the biggest gainer of the top components of the index. Ahead of its Q1 report, the issue gained $8.21 or 5 percent to close at $169.75. That evaporated and more, following its Q1 report after the bell.
That far exceeded the cash index’s gain of 0.92 percent.
The safety or Band-Aid trade was off in Wednesday’s session as Johnson & Johnson (NYSE: JNJ) declined by $1.78 or 0.98 percent to close at $179.62.
PreMarket Prep Plus Talks Biotech Sector
On this week’s version of “Wednesday’s With Wedbush”, Robert Driscoll, Senior Vice-President covering the biotech industry shared a few of his picks. Read more on the Biotech picks here.