On the final day of the week and month, the S&P 500 index futures had a wild 100+ handle range day, the largest seen since mid-April.
Before inflation-related data was released at 8:30am EDT, the index futures traded wholly in the red during Friday’s premarket session, even making new lows for the week. Once April’s PCE data was released, that narrative took a decided turn. The PCE index and Core PCE index came in within expectations and even matched the previous numbers from March, while consumer spending came in below expectations, as per the below chart.
| April Report | Actual | Expected | Previous |
| PCE Index (MoM) | 0.3% | 0.3% | 0.3% |
| PCE Index (YoY) | 2.7% | 2.7% | 2.7% |
| Core PCE Index (MoM) | 0.2% | 0.2% | 0.2% |
| Core PCE Index (YoY) | 2.8% | 2.8% | 2.8% |
| Consumer Spending (MoM) | 0.2% | 0.4% | 0.7% |
For the most part, “no news” was interpreted as good news, as the bulls initiated a rally straight up to last week’s low near the 5273 area. Once the regular session commenced, this resistance area was tested once again, but the bulls were unable to overcome sellers. For the rest of the morning, a steady selloff ensued, pausing briefly at the premarket low and resuming lower.
During the lunch hour, the bulls were able to find support just above the psychological 5200 level, bottoming at 5205.50. From that point onwards, the bulls started to pick up steam and the rally was on. After pausing once again near the premarket low, the bulls started to bring the index futures back into the green, and neared the premarket high.
Nearing the end of the session, closing imbalances came in as investors prepared to adjust their positions for the end of the day, week and month. Between the large buy imbalances and other factors, the bulls surged past the premarket high in the final 10 minutes of the session, nearly reaching the 5300 handle.
The session concluded at 5295.50, adding a decent 42.50 handles for the day, with the rally topping out at 5307 in after hours trading. For the week, that makes for a loss of 26 handles or 0.49% and for the month, a gain of 249 handles or 4.93%.
Among the top components of the index, JPMorgan Chase & Co (NYSE: JPM) emerged as the biggest gainer for Friday’s session. The banking behemoth was able to advance by $3.30 or 1.66% to close at $202.63 for the day.
That performance was slightly better than the cash index’s advance of 0.91%.
On the other hand, risk-on issues did not fare quite as well and Broadcom Inc (NASDAQ: AVGO) ended up as the biggest loser. For the day, the chip designer declined by $35.53 or 2.60% to close at $1328.55.
