For one session, the S&P 500 index futures were not totally prisoner to the headlines coming out of the Russia/Ukraine crisis. Instead, Federal Reserve Chair, Jerome Powell, during his testimony to Congress on the markers, instilled calm in the rattled nerves of investors.
One statement from Powell, that he believed 0.25% rate hikes are appropriate for now and he would be open to larger hikes if inflation worsens, instigated a buying frenzy.
The index had already indicated from premarket trading, that it wanted to go higher after Monday and Tuesday’s rocky sessions. By the open of the regular session, the index was in the green by over 20 handles after finding support just above Tuesday’s low in premarket trading.
The initial breach of the premarket high was greeted with a swift move down to the intraday low. However, on the second attempt, with Powell’s testimony as a catalyst, exploded to the upside.
Earlier in the week, it was discovered that major resistance was easier to identify than major support. That resistance came into play again today. The highs over the last four sessions have been in a narrow range from 4384.50 to near-perfect double top from Tuesday (4399) and today (4399.25),
Some negative headlines out of Ukraine near the close prompted the index to repel from that all-important area. For the session, the index added 78 handles to close at 4381.75.
Nvidia Corp (NASDAQ: NVDA) was the biggest winner of the top components of the index. The issue, which has been higher in four of the last five sessions, gained $7.43 or 3.2% to close at $242.20.
That was about one percent over the cash index’s gain of 1.81%.
The smallest winner was the biggest loser of the top components. That was tech giant, Amazon.com (NASDAQ: AMZN), which added $11.6 or 0.37% to close at $3034.
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