Day trading pre-market open April 8

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Positive after US stocks claw back some losses at the end of the Dow's worst week of 2024.

ASX futures: up 38 points or 0.49%


Friday themes:

• US stocks rebound as jobs data underscore the strength of the economy, even while possibly delaying the start of interest rate cuts later this year.
• The major indices book solid gains at the end of a week when markets downwardly revised expectations for rate cuts. The S&P 500 bounces 1.11%. The Nasdaq gains 1.24%. The Dow puts on 0.8%.
• Stocks rally after the Labor Department reports a 303,000 surge in non-farm payrolls last month, smashing expectations. The unemployment rate falls to 3.88% from 3.9% in February.
• The report soothes fears that last year's rate rises could push the economy into recession. However, economists warn the strength of the job gains means the Federal Reserve may not start to lower rates as soon as prior market pricing suggests.
• "What we are continuing to see is that a robust economy is not necessarily inflationary, and this labor report, even though it's just for one month, reinforces that there's less likelihood of a recession, which is more important than the expectations of the timing of interest rate reductions" - Tom Plumb, president and portfolio manager at Plumb Funds (per Reuters).
• JPMorgan pushes back its forecast for the first rate cut from June to July. Treasury yields jump as bond traders revise their rates outlooks.
• "While we... believe the Fed is likely to proceed with three rate cuts this year, reports like these may tilt some policymakers toward expecting fewer rate cuts in 2024" - Lydia Boussour, senior economist at EY-Parthenon (per Reuters).
• A broad rally lifts all S&P sectors. Topping the list are: communication services +1.61%, industrials +1.43% and tech +1.38%. Consumer staples and utilities bring up the rear with gains of 0.22% and 0.35%, respectively.
• Friday's rally pares losses for the major indices. Stocks fell for much of the week as central bank policymakers warned they were in no rush to cut rates, and as the threat of a wider conflict in the Middle East appeared to increase. The Dow's 2.27% weekly decline is its largest in percentage terms this year. The S&P 500 loses 0.95% for the week. The Nasdaq sheds 0.8%.
• Oil climbs to a five-month high, extending its rise for the week towards 5%. The rally comes as Iran threatens retaliation for an Israeli strike on its embassy in Syria. Brent crude gains 0.6% on Friday for a weekly gain of 4.8%.
• Gold sets a fresh record, fuelled by tensions in the Middle East, central bank buying and bets on rate cuts. The yellow metal touches an intraday record of US$2,350 an ounce before a record settlement of US$2,345.40.

Key events this week:

• Business confidence - Tuesday
• Consumer sentiment - Tuesday
• US consumer inflation (CPI) - Wednesday
• Minutes from last month's Federal Reserve policy meeting - Wednesday
• China inflation - Thursday
• US producer inflation (PPI) - Thursday
• US consumer sentiment - Friday

S&P 500: up 57 points or 1.11%

Dow: up 307 points or 0.8%

Nasdaq: up 199 points or 1.24%

Dollar: down 0.1% to 65.73 US cents

Iron ore (Singapore): up 0.1% to US$99.97

Brent crude: up 52 US cents or 0.6% to US$91.17

Gold: up US$36.90 or 1.6% to US$2,345.40

NYSE Arca Gold Bugs: up 3.26% (10-month high)

Bitcoin: up 0.29% to US$69,279

Copper (LME): up 0.2% to US$9,348

Nickel (LME): up 0.53% to US$17,804

Uranium (spot price): steady at US$90

Lithium carbonate (China spot): untraded at US$15,336 (China market holiday)

Global X Lithium & Battery Tech ETF: down 0.64%

BHP: down 0.14% (US); down 1.85% (UK)

Rio Tinto: down 0.47% (US); down 2.35% (UK)