Monday’s trading session in the S&P 500 index futures was characterized by caution, influenced by Federal Reserve Chair Powell’s 60 Minutes interview over the weekend and economic data released during the day.
The ISM non-manufacturing prices for January, reported at 8am EST, came in at 64 against an expectation of 56.5. With the background of Powell’s dovish remarks, the chance of interest rates remaining elevated for an extended period remains high. This outlook initially empowered the bears, driving the index futures down by over 40 handles shortly after the market opened.
Despite the bearish start, a recovery was evident as buyers stepped in above Friday’s low, propelling the index futures to recover to the opening level by the lunch hour, creating a V-bottom pattern for the day. However, despite a late attempt by the bulls to breach the premarket highs, selling pressure resumed, dashing any hopes for a positive close.
The session concluded with the index futures down by 18.25 handles, settling at 4962.
Among the top components of the index, Eli Lilly and Co. (NYSE: LLY) distinguished itself as the day’s most significant winner, surpassing even NVIDIA Corp. (NASDAQ: NVDA)’s impressive performance. Anticipation surrounding its Q4 earnings report, due Tuesday morning, pushed Eli Lilly’s stock up by $38.55 or 5.77%, closing at $706.20.
This remarkable gain outstripped the cash index’s decline of 0.36% by more than six percent.
Tesla, Inc. (NASDAQ: TSLA) resumed its position as the session’s most notable loser among top components. The electric vehicle manufacturer’s stock fell by $6.85 or 3.65%, ending the day at $181.06.
