U.S.-China trade discussions currently underway influence Stock Futures, aiming to prolong the rally; S&P 500 surges to record high not seen since February.
Informal Take on the Stock Market Kickoff for Monday
Stock futures are showing a slight upward trend for main indexes on the coming Monday. Investors are excitedly waiting for updates from the trade negotiations happening between the U.S. and China.
S&P 500 futures are up 0.2%, with the Dow Jones Industrial Average and Nasdaq following closely, each adding 0.1%. The market is buzzing after a positive week, with the benchmark S&P 500 index smashing 6,000 points on Friday for the first time since February, thanks to a better-than-expected May jobs report.
The economy has been on solid ground lately, with corporate earnings reports generally strong and various indicators pointing to a stable economy. Trade developments, however, have the potential to shake things up, and today's talks between U.S. and Chinese officials in London are being closely monitored as investors seek confirmation that the two nations won't reimpose devastating tariffs on each other.
Some of the world's tech titans, who've fueled the market's recent growth, are seeing gains this morning. Apple shares are up 0.5%, all set for the company's Worldwide Developers Conference later today. Shares of Nvidia, Amazon, Alphabet, Meta Platforms, and Broadcom are also ticking up. Tesla is down 1.5%, struggling after a heated public feud between Elon Musk and President Donald Trump last week. Microsoft is also showing a slight dip, having closed the previous week at a record high.
Warner Bros. Discovery shares are surging more than 6% in premarket trading, following the entertainment giant's announcement of splitting into two publicly traded companies, separating its cable business from its streaming and studio units.
Some other notable movers include Robinhood Markets and adtech company Applovin, which dropped more than 3% each. Both companies were seen as possible inclusions in the S&P 500 ahead of a potential rebalancing of the benchmark index, but no changes were made.
USDC stablecoin issuer Circle Internet Group shares are up 17% in premarket trading, building on the massive gains the company realised following its IPO last week.
In the crypto world, bitcoin is up to $107,900 this morning, climbing from an overnight low of $105,400. Major bitcoin buyer Strategy and crypto trading platform Coinbase Global are each up more than 2%.
WTI futures, the U.S. crude oil benchmark, are up 0.7% at around $65 per barrel, marking the third straight day of gains and trading at its highest level since mid-April. Gold futures, on the other hand, are down 0.1% at $3,345 an ounce.
The 10-year Treasury note yield, a significant factor in mortgage rates, is steady at 4.51%, a two-week high. The U.S. dollar index, which measures the dollar's performance against foreign currencies, has dipped 0.1% to 99.10.
Eyeing the 6k Milepost: Will the S&P 500 Sustain Its Momentum?
The S&P 500 recently stormed past the 6,000-point mark on Friday for the first time since February, igniting a rally in stocks fueled by optimism about strong corporate earnings and economic data. As traders look anxiously towards further trade updates, it's worth considering the key levels the S&P 500 must cross and hold to confirm the strength of its upward trend.
After breaking through a descending broadening formation, the S&P 500 roared higher before consolidating within a pennant. The index broke out from the pattern last week, suggesting a continuation of its move higher. Meanwhile, the relative strength index (RSI) validates bullish momentum but remains below the overbought threshold, offering room for even more gains.
Keen traders should keep an eye on important overhead levels for the S&P 500 around 6,100 and 6,575, while also tracking crucial support levels near 5,770 and 5,650.
The S&P 500 closed at exactly 6,000 on Friday, with futures pointing to a tentative rise for the benchmark index on Monday.
For the full technical analysis analysis piece, head over here.
-*John "The Stock Whisperer" Johnson
The Score for Monday's Wall Street Dance
Dow Jones Industrial Average futures are up 0.1%.
S&P 500 futures are showing a 0.2% increase.
Nasdaq 100 futures are adding 0.1%.
- The stablecoin USDC, issued by Circle Internet Group, is up 17% in premarket trading, reflecting the continued interest in digital assets like bitcoin.
- Traders are awaiting updates from trade negotiations between the U.S. and China, as they potentially impact the ongoing positive momentum in the stock market, such as the S&P 500, which recently surpassed 6,000 points.
- In the crypto world, bitcoin has climbed to $107,900, and major players like Coinbase Global are also experiencing gains, indicating increased demand for cryptocurrencies and related trading platforms.
- The S&P 500 closed at exactly 6,000 on Friday, and while some key levels, like 6,100 and 6,575, are still significant for the index, the momentum built up has generated optimism in the investing community.
- Some tech companies, such as Apple and Nvidia, are seeing gains this morning, further fueling the rally in the stock market, especially after a positive week marked by better-than-expected May jobs data and strong corporate earnings reports.
