Day trading pre-market open January 19

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


Outlook for the day: Highly positive following five days of losses.

ASX futures: up 72 points or 0.98%


Overnight themes:

• A strong rally in tech stocks helps Wall Street shrug off rising treasury yields as claims for jobless benefits underscore strength in the labour market and another Federal Reserve official pushes back against rate-cut expectations.
• The Nasdaq jumps more than 1.3%. Chip-makers surge after the world's biggest contract chip-maker (Taiwan-based TSMC) forecasts strong revenue growth this year on demand for AI applications. Nvidia hits a record high on heavy trade. The Philadelphia SE semiconductor index nears last month's all-time high.
• The S&P 500 tech sector hits a record, gaining 2.03%. A broker upgrade lifts Apple 3.1%.
• Treasury yields rally after first-time claims for unemployment insurance fall to the lowest in 16 months. First-time claims decline by 16,000 last week to 187,000, well below the Wall Street analyst consensus for a reading of 208,000.
• Also weighing on bonds was a speech by Atlanta Fed President Raphael Bostic arguing rate cuts should start no sooner than the third quarter of this year. “Premature rate cuts could unleash a surge in demand that could initiate upward pressure on prices,” Bostic warned.
• The odds on a March rate cut have fallen to 56% this week from above 80% a month ago amid signs that the US economy has strong momentum, sustaining inflationary pressures.
• "The story this week continues to be robust economic data, and how it may keep rate cuts on ice for a while... Until we start to consistently seen softer numbers, especially in the labor market, the Fed will likely stick to its higher-for-longer stance" - Chris Larkin, managing director for trading and investing at E-Trade from Morgan Stanley.
• Rate-sensitive sectors fare worst in a mixed market. Utilities decline 1.05%. Real estate loses 0.61%. Energy and consumer staples also lose ground.
• Iron ore rebounds after China's state planner reignites stimulus hopes with a speech focussing on plans to encourage demand and strengthen the economy. China-traded ore bounces back above US$130 a metric ton after being under pressure for much of the last two weeks.

Key events today:

• US consumer sentiment - tonight

S&P 500: up 42 points or 0.88%

Dow: up 202 points or 0.54%

Nasdaq: up 200 points or 1.35%

Dollar: up 0.26% to 65.69 US cents

Iron ore (Dalian): up 0.8% to US$131.85

Brent crude: up US$1.22 or 1.57% to US$79.10

Gold: up US$15.10 or 0.75% to US$2,021.60

NYSE Arca Gold Bugs: down 0.27%

Bitcoin: down 4.27% to US$40,861

Copper (LME): up 0.53% to US$8,312

Nickel (LME): up 0.43% to US$16,170

Uranium (spot price): steady at US$108

Lithium carbonate (China spot): down 0.14% to US$13,385

Global X Lithium & Battery Tech ETF: up 0.85%

BHP: up 0.12% (US); down 0.73% (UK)

Rio Tinto: up 1.41% (US); up 0.98% (UK)