Similar to Thursday’s action in the S&P 500 index futures, the premarket session seemed to be setting up for a mostly bullish day. However, resistance near the previous week’s and December’s highs led to a brief selloff, resulting in only a marginally higher opening for the regular session.
As the regular session got underway, sellers were active, but strong support just above Thursday’s close prevented a significant decline. The release of January’s Consumer Sentiment report also came in higher than expected (78.8 vs 69.7 exp.) at 10am EST which bolstered the bulls, sparking a rally.
The bullish momentum encountered a pause at the highs from December, last week and the premarket session. Once this resistance was overcome, the rally gained pace, propelling the index steadily higher.
Despite a choppy final two hours, the index futures managed to close near the day’s highs, marking a substantial gain of 58.25 handles and finishing at 4869.50. This level marks a significant milestone for the S&P 500 index futures, reaching heights not seen since January 2022 for the front month contract. For the index ETF (NYSE: SPY), this marked new all-time highs. The day’s futures performance also accounted for the entire weekly gain of 58.25 handles, or 1.2%.
Broadcom, Inc. (NASDAQ: AVGO) led the top components as the biggest gainer, outshining even other semiconductor-related issues. The surge, bolstered by Goldman Sachs reinstating a buy rating and continued strength in the AI industry, saw the stock rise by $67.29 or 5.88%, closing at $1211.20.
This impressive performance was significantly ahead of the cash index’s gain of 1.25%.
On the flip side, UnitedHealth Group Inc. (NYSE: UNH) faced a downturn, becoming the session’s most significant loser among the top components. The healthcare giant’s stock fell by $12.78 or 2.48%, ending at $503.56.
