S&P 500 claws back big early losses to finish higher
US stocks opened sharply lower, but rebounded throughout the day to finish at session highs. The S&P 500 and Russell 2000 advanced 0.2% while the Nasdaq 100 lost 0.3%.
Breadth was strong, as the number of risers in the S&P 500 outnumbered decliners by 254.
Every S&P 500 sector ETF was positive outside of utilities and tech. The commodity complex led the way, with energy and materials gaining more than 2% while real estate, healthcare, and industrials were up in excess of 1%.
The Magnificent 7 cohort underperformed, down 0.4%. Apple traded lower on reports that iPhone sales volumes fell 5% year on year in the fourth quarter, while Nvidia dropped as the Biden administration unveiled new curbs on semiconductor exports.
US Steel gained on news that other miners (like Cleveland-Cliffs) will take a run at acquiring the company after the Biden administration quashed the takeover attempt by Japan’s Nippon Steel.
Johnson & Johnson announced a deal to buy drugmaker Intra-Cellular Therapies, which sent shares of the former up a bit and shares of the latter up a lot.
Trump Media & Technology Group surged amid a wave of bullish options activity ahead of the inauguration.
Quantum-computing stocks were crushed, with D-Wave Quantum’s potential capital raise casting a pall over the cohort.
Moderna sank to its lowest levels since April 2020 after releasing an underwhelming revenue outlook, erasing pandemic-era gains.
Abercrombie & Fitch also tumbled after posting weak sales guidance.
