THE GIST (“THE WHAT”)
Rallying at the open, the S&P 500 index pulled back fractionally shy of testing the key 4300 level. Registering the day’s high at 4299.19, the index traded lower for the remaining part of the session, closing near day’s lows at 4267.51, down 16.35 points (-0.38%). Decline in mega-cap tech stocks alongside rising yields coupled with global recessionary concerns weighed down on the broader market sentiment.
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Last Hurray of the Bull, or the Next Leg Up, Day 3
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THE DETAILS (The “How & Why”):
Bond yields jumped after Bank of Canada unexpectedly increased interest rates, increasing apprehension ahead of the Fed’s policy decision next week. China reported its biggest decline in exports in over four months, down 7.5%, reigniting global recessionary concerns. The 10-year T-note yield hit a one-week high of 3.799%, settling at 3.776%.
Mega-cap tech stocks retreated alongside rising yields. Amazon, Alphabet, Microsoft all closed lower by more than 3% each. Meta Platforms and NVIDIA also fell 2.77% and 3.04%, respectively.
Campbell Soup was the worst decliner of the session, tumbling 8% following a lower-than-expected EPS forecast for the full-year. Intuit Inc. and Advanced Micro Devices Inc. were other sharp decliners of the session, down 5.8% and 5.2%, respectively.
On the bright side, an 8.4% jump in Warner Bros Discovery capped the losses in the broader index on reports of a potential deal between Amazon, Warner Bros Discovery and Paramount Global. Energy stocks also rallied alongside a jump in oil price. Marathon Oil, Marathon Petroleum and Haliburton all jumped more than 4%.