THE GIST (“THE WHAT”)
The S&P 500 index remains range bound, stuck between 4100 and 4185 as markets navigate through an unchartered territory of rising interest rates, sticky inflation and a looming U.S. debt crisis. Trading directionless within yesterday’s range, the index closed slightly lower at 4130.63, down 7 points (-0.71%).
Note: Our daily “S&P 500 Trading plan” will be posted around 9:30/10:00am EDT, every trading day.
For the Trading Plans published this morning, please click here
For the last published Results of the Morning Trading Plans, please click here
THE DETAILS (The “How & Why”):
Regional bank stocks continued their trend down alongside a 22% plunge in PacWest Bancorp after it reported a 9.5% drop in deposits last week. Energy stocks were amongst the worst decliners as oil prices remained under pressure amid global recessionary concerns. Other cyclical stocks also traded broadly lower for the day.
Disney tumbled 8% after the media giant posted a decline in subscriber growth in its streaming business and announced a massive $1.8 billion impairment charge as it removes more content from its streaming platforms.
A rally in mega-cap tech stocks, however, helped limit losses in the broader index as yields fell for the second day in a row following a mixed bag of economic data. PPI and Labor data suggested slowing pace of inflation and a weakening labor market. Alphabet jumped 4.31% after the Google parent announced several AI products in an attempt to take on competition from Microsoft’s ChatGpt.