Once again, mega cap technology stocks propelled the index sharply higher to end the week. With six of the seven top components all being mega cap technology, all sporting gains from 1.04 % to 4.48%, the index has nowhere to go but up. Include a 6% move higher in Tesla and it is not surprising the index posted its highest close for the recent rebound.
The index spent a majority of the premarket in the green. When it dipped slightly in the red following higher-than-expected April PCE (Personal Consumption Expenditures), there was plenty of demand underneath.
Once the index breached the premarket high of 4171.75, the pace of the rally greatly accelerated. Based on the daily charts, there was no resistance until the pair of highs at the 4220-area, and that is where the index went. Heading into the last 45 minutes of the session, the index peaked at 4221.25 and retreated slightly into the close.
The end result was a gain of 53.50 handles at the closing price 4213.25, a new closing high for the move. For the week, the index eked out a gain of 8.50 handles.
Tesla Inc. (NASDAQ: TSLA) was the biggest winner of the top components of the index. The issue was higher for the third consecutive day by adding $8.70 or 4.7% at the closing price of $193.17.
That was three times over the cash index’s gain of 1.29%.
Exxon Mobil (NYSE: XOM) was the biggest loser of the top components of the index. For the session, the issue declined by $0.69 or 0.65% at the closing price of $104.97.
