Day trading pre-market open August 5

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.


Outlook for the day: Highly positive after US stocks recouped almost all of Friday's heavy fall, and key commodities posted gains.

ASX futures: up 86 points or 1%


Overnight themes: ​

• US stocks reversed Friday's steep losses as the odds on a September interest rate cut climbed and investors seized the opportunity to pick up shares at four-week lows.​
• The S&P 500 bounced 1.47% to its first gain in five sessions and largest advance since May. The Dow rallied 585 points or 1.34%. The Nasdaq Composite climbed 1.95%. ​
• Bargain-hunters stepped up after weak job figures sparked a plunge on Friday. The major indices lost between 1.23% and 2.24% on Friday as evidence of a slowing labour market rekindled recession fears. Buyers returned overnight as CME's FedWatch tool showed the odds on a rate cut when the Federal Reserve next meets in August have climbed to 87.8% from around 63% a week ago. ​
• "Today is just a little bit of dip-buying. It does show a pretty healthy sign of folks out there looking for an opportunity to get in... There's a high probability we're getting a September cut," Mike Dickson, head of research and quantitative strategies at Horizon Investments, told Reuters.​
• Growth stocks led the charge as the US dollar and US treasury yields retreated. The tech and communication services sectors both gained more than 2.1%. Also strong: utilities +1.74%, materials +1.42% and health +1.41%. Energy was the only sector to miss the upswing, falling 0.44% after the OPEC+ group of major producers agreed to increase crude production (more below). ​
• A light week ahead for economic data appears likely to be dominated by quarterly trading updates. Caterpillar, AMD and Pfizer report tonight. Palantir reported after the end of regular US trade this morning.​
• US gold miners charged higher as the prospect of lower interest rates lifted precious metal prices for a second session. US gold futures rallied US$26.60 or 0.8% to settle at US$3,426.40 an ounce. Spot gold firmed US$10.07 or 0.3% to US$3,373. "The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That coupled with the headwinds of inflation, I think is pretty bullish for gold," Daniel Pavilonis, senior market strategist at RJO Futures, told Reuters. Spot silver firmed 39 US cents or 1.04% to US$37.42. The NYSE Arca Gold Bugs Index of US miners popped 4.73% overnight. ​
• Iron ore rebounded from a two-week low as solid Chinese steel production and a dip in portside ore stocks encouraged buyers after last week's sell-off. Average daily hot metal output moderated last week but remained at a level seen as signifying steady demand. Portside ore stocks declined 0.6% week-on-week to the lowest since February 2024. Benchmark ore on the Dalian Commodity Exchange ended daytime trade 0.76% ahead at US$110.15 per metric ton. ​
• Copper rose in London and US trade after a mining collapse in Chile prompted copper giant Codelco to suspend operations at its El Teniente mine. The mine produced 356,000 tons of copper last year. Benchmark copper on the London Metal Exchange firmed 0.7% to US$9,698 per metric ton. US copper futures extended Friday's bounce with a gain of 0.46% to US$4.456 per pound. ​
• Oil fell for a second session after the OPEC+ oil cartel agreed to boost production by 548,000 barrels per day. The weekend decision restores production to its original level before the group voted in 2023 to restrict output to support prices. Brent crude dropped 91 US cents or 1.31% to US$68.76 a barrel.​

Key events today: ​

• Earnings season: Credit Corp, Pinnacle Investment Management (source: CommSec)​
• Job ads - 11.30 am AEST​
• China services PMI - 11.45 am​
• US services PMI - tonight ​
• US earnings: Caterpillar, Pfizer, AMD​

S&P 500: up 92 points or 1.47%

Dow: up 585 points or 1.34%

Nasdaq: up 403 points or 1.95%

VIX: down 14.03% to 17.52

US 10-year treasury yield: down 2.7 points to 4.198%

Dollar: up 0.1% to 64.75 US cents

Iron ore (Dalian): up 0.76% to US$110.15

Brent crude: down 91 US cents or 1.31% to US$68.76

Gold (futures): up US$26.60 or 0.8% to US$3,426.40

Gold (spot): up US$10.07 or 0.3% to US$3,373

Silver (spot): up 39 US cents or 1.04% to US$37.42

Palladium (spot): down US$4 or 0.33% to US$1,202.50

Antimony (China ore): up 0.21% to US$19,772

NYSE Arca Gold Bugs: up 4.73%

Bitcoin: up 0.41% to US$114,901

Copper (LME): up 0.7% to US$9,698

Nickel (LME): up 0.57% to US$15,105

Lithium carbonate (China spot battery grade): up 0.21% to 8,762 yuan

Global X Lithium & Battery Tech ETF: up 1.69%

Uranium (spot): steady at US$71.25

Global X Uranium ETF (URA): up 3.32%

BHP: up 1.77% (US); up 1.31% (UK)

Rio Tinto: up 0.59% (US); down 0.06% (UK) ​