The S&P 500 Index had its resurgent momentum stalled abruptly today, after what began as promising premarket and regular sessions.
Both the overnight and premarket trading sessions witnessed a dominance of the bulls, presumably in eager anticipation of the Consumer Price Index (CPI) report for July. The initial thirty minutes after the regular session opened further buoyed this sentiment, with the bulls pushing the index to an impressive high of 4544.75.
However, once the CPI data dropped and investors mulled over its implications, a stark shift occurred. The CPI rose by 0.2% compared to the last month. However, on an annual scale, the figure was more alarming. The inflation rate has edged past the 3% annual increase reported in June, now standing at a 3.2% annual increase over the past 12 months.
The bears seized this window of opportunity, driving the index from an impressive gain of over 55 handles to a net negative for the day, hitting a low of 4473.50. Despite the dive, the market didn’t close entirely in gloom. A jagged recovery ensued, and by the time the session wrapped up, the futures index landed at an unusual position. The S&P E-Mini Futures concluded the day precisely flat, with a closing at 4485.75, reflecting an exact 0.00% change.
Among the day’s top performers, Tesla Inc. (NASDAQ: TSLA) emerged as the leader. The electric vehicle giant advanced by 1.30% or $3.15, marking the close at $245.34.
This robust performance was notably over 1% better than the cash index’s scratch increase of 0.03% for the day.
On the other end of the spectrum, NVIDIA Corporation (NASDAQ: NVDA) felt the pinch. The chip behemoth concluded the session as the underperformer among the leading components, declining by 0.39% or $1.66 to close at $423.88.
