Contrary to recent PPI reactions, the S&P 500 index futures dropped after the morning Producer Price Index data and stayed stuck in last week’s range, closing the week soft.
| January Report | Actual | Expected | Previous |
| PPI (MoM) | 0.5% | 0.3% | 0.4% |
| PPI (YoY) | 2.9% | 2.6% | 3.0% |
| Core PPI (MoM) | 0.3% | 0.4% | 0.3% |
| Core PPI (YoY) | 3.4% | – | 3.5% |
Overnight, bulls initially fended off sellers, reaching a high of 6915.50 early before bears took over and imposed lower highs through the morning. The mixed PPI report, which included some prior revisions down, prompted bears to press to new premarket lows, though the slide was limited to about 15 handles before bulls found support ahead of the open.
Chop intensified after the bell as bulls and bears battled for control. Bears briefly pierced the premarket low to 6841.50, but that dip was bought aggressively. After the first half hour, bulls began holding higher lows amid the chop. The rally then stalled near 6890 and retreated slightly in the afternoon.
In the final hour, bulls attempted one last push, but month-end position adjustments kept action pinned near that intraday resistance. The session closed above the day’s midpoint at 6889, down 31 handles. For the week that adds up to a 34.25 handle or 0.49% loss. For the month it’s a 76.75 handle or 1.10% decline.
Next week brings scattered macro data with February’s jobs report on Friday plus a busy, though slightly lighter, earnings slate including Broadcom Inc (NASDAQ: AVGO) Wednesday evening.
Among the top components of the index, Walmart Inc (NYSE: WMT) stood out as the biggest gainer, rising $3.53 or 2.84% to close at $127.95 as investors rotated from tech into value.
That performance was over three percent better than the cash index’s 0.48% decline.
For the second day in a row, NVIDIA Corp (NASDAQ: NVDA) was the biggest loser, falling $7.70 or 4.16% to close at $177.19.
