By ForexTime
US stock futures are building on Monday’s gains, after a strong rebound in technology stocks.
The SPX500_m has broken past the psychologically-important 4,400 mark, making an about-turn after halting a four-day drop.
This rebound comes after global stocks had their biggest weekly drop since March last week.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
The “magnificent seven” of megacap tech stocks – Alphabet, Amazon, Apple Meta, Microsoft, Nvidia and Tesla – lost more than $900 billion in value over three consecutive weeks of falls. That was their worst run of combined market cap decline this year.
But yesterday saw Tesla jump over 7% while Nvidia rose 8.5% ahead of its results after the closing bell on Wednesday which will be a key focus.
Gold dipped $1885 to post a five-month low yesterday which came after four straight weeks of losses, something not seen since February.
Rampant Treasury yields are not a good sign for bullion as it is a non-interest-bearing asset.
Indeed, the 10-year “real” yield has hit 2% for the first time since March 2009. However, prices have been oversold on momentum indicators and buyers have stepped in recently as we are now seeing a third day of gains this morning.
The yellow metal still currently trades below the 200-day simple moving average (SMA), though has resurfaced above the psychologically-important $1900 level for the time being.
We also note that hedge funds cut their gold longs to a six-month low in the week to August 15 while ETF holdings have seen 12 straight weeks of outflows.
Markets have half an eye on Fed Chair Powell’s speech on Friday at Jackson Hole while trying to navigate surging borrowing costs.
Higher rates for longer should be a headwind for stocks and also gold, potentially exerting an ultimate cap on how high these assets can climb.
But for now, markets are putting such thoughts aside, with US stocks and gold attempting to enter the tail-end of August on a less dour note.
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
By Sehoon Kim, University of Florida Carbon offsets have become big business as more companies…
By JustMarkets At the end of Monday, the Dow Jones Index (US30) rose by 0.69%.…
By RoboForex Analytical Department Brent crude oil prices have continued to slip, touching 71.74 USD…
By ForexTime Bitcoin has surged over 17% since Nov. 5th US elections day The world’s oldest…
By JustMarkets On Friday, the Dow Jones (US30) rose by 0.59% to reach 44,000 points…
By RoboForex Analytical Department The AUD/USD pair is navigating the week starting with a steady…
This website uses cookies.