THE GIST (“THE WHAT”)
The S&P 500 remains range bound as investors await key inflation data ahead of the Fed’s highly anticipated rate-setting meeting next week. Attempting to recover from early session losses, the index pulled back sharply in the afternoon session to close modestly lower at 4461.91, down 25.56 points (-0.57%) over the previous session. Sharp declines in Technology space led by Oracle and Apple were offset by a strong rally in energy stocks as oil prices continue marching higher.
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THE DETAILS (The “How & Why”):
Oracle tumbled 13.50%, posting its worst one-day decline since March 2002 and leading the broader market lower after the software giant disappointed investors with weaker-than-expected quarterly revenues on the back of slowing cloud sales coupled with a downbeat outlook. Apple gave up 1.71% on unveiling its new iPhone 15 at its keenly awaited annual marketing event. The iPhone maker also raised the price of its iPhone Pro Max for the first time. Adobe, Microsoft, and Broadcom were other major decliners within the technology space, down 3.9%, 1.8% and 1.7%, respectively.
Losses within the broader index were, however, capped by decent gains in energy and financial sectors. Oil prices continue marching higher, with the WTI crude oil price hitting its highest level in ten months. Automakers received a decent boost following reports that the United Auto Workers union has softened its latest demand for wage increases. General Motors and Stellantis jumped more than 2% each, while Ford gained 1.9%.
The index remains range-bound and in a holding pattern as investors look for cues on economic outlook and the Fed’s next interest rate policy decision. Yields slipped today but were unable to provide a meaningful support to the broader market. The 10-year treasury yield fell 2.6 basis point to settle at 4.262%.