The S&P 500 index futures faced continued selling pressure on Tuesday, extending Monday’s pullback from record highs, as market participants positioned themselves cautiously ahead of Federal Reserve Chair Jerome Powell’s upcoming testimony to Congress. On a positive note, support was eventually found in a familiar area.
Tuesday’s overnight session foreshadowed the day’s trajectory, initiating a slow and steady descent that carried through to the premarket and intensified as the regular session approached. Amidst a landscape of economic data releases between 9:45-10am EST, with S&P US Services PMI and Composite PMI for February surpassing expectations, contrasted by a disappointing ISM services report, the market exhibited volatility. An initial surge at 10am EST briefly propelled the index futures to new intraday highs. However, this optimism was short-lived, as bearish momentum promptly reversed these gains, establishing new lows for the session.
Efforts by the bulls to stabilize the market around Friday’s lows in the 5090 area proved futile, with the index ultimately finding a firmer footing near last week’s lows at 5063. In the final hour of trading, the bulls mounted a significant recovery effort, rallying towards the day’s close. Nevertheless, previous support had turned into resistance in the 5090 area, putting a cap on the rally. The session concluded at 5085.75, marking a decline of 52.50 handles.
JPMorgan Chase & Co (NYSE: JPM) stood out among the index’s top components, defying the broader market downturn to set new all-time highs. The banking giant’s stock advanced $1.87 or 1.00%, closing at $188.55, a new all-time closing high.
That performance was over 2 percent better than the cash index’s decline of 1.00%.
Conversely, Broadcom Inc (NASDAQ: AVGO) bore the brunt of the session’s sell-off, particularly feeling the weight of a broader retreat in the AI and chip industries. The semiconductor company’s shares plummeted $59.51 or -4.24%, ending the day at $1342.75.
