Day trading pre-market open March 7

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Positive as US stocks rebound from two days of losses after the Federal Reserve foreshadows rate cuts later this year.

ASX futures: up 37 points or 0.48%


Overnight themes:

• US stocks rally for the first time in three sessions after Federal Reserve Chair Jerome Powell dismisses recession fears and reaffirms that rate cuts will "likely be appropriate" this year if the economy develops to plan.
• "There's no evidence, there's no reason to think, that the U.S. economy is in, or in some kind of short-term risk of, falling into recession," Powell tells the House Financial Services Committee. Rather, the economy is on track to achieve a "soft landing", with unemployment low and inflation returning to target, he adds.
• The central bank chief repeats the now-familiar mantra that policymakers need to see more evidence that inflation is "moving sustainably down to 2%" before lowering rates. However, “If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”
• Treasury yields retreat and the US dollar index drops around a third of a percentage point. Gold logs a fourth straight record close.
• Data overnight confirm that the jobs market is losing heat. Job openings decline by 26,000 in January to 8.863 million. Worker resignations fall to their lowest in three years.
• The major stock indices pare their gains sharply in afternoon trade as index heavyweight Apple falls for a sixth session. The consumer tech giant is down around 12% this year. Its current losing run is the longest since 2020.
• Troubled New York Community Bancorp swings from an intraday loss of more than 40% to a gain of 8.07% after announcing a massive capital raise.
• Chip-makers once again outperform. Nvidia rises 3.18% to a new record. The Philadelphia semiconductor index gains 2.42%.
• “No news is good news from Powell. He confirmed that the bias from here is likely toward lower rates and emphasised potential risks from not cutting” - David Russell, global head of market strategy at online investing platform TradeStation.
• The Aussie dollar rallies almost 1% as the greenback reacts to assurances that US rate cuts will come this year. Dollar-denominated commodity prices also catch a boost.
• The US materials sector gains 0.75%. Also strong are utilities +0.97%, tech +0.91% and consumer staples +0.8%.
• Battery metal miners rebound in the US from two days of fierce selling. The Global X Lithium & Battery Tech ETF bounces 2.95% after spodumene concentrate rallies above US$1,000 per metric ton in China. US market-leader Albemarle jumps 9.33%.

Key events today:

• Balance of trade - 11.30 am AEDT
• More Congressional testimony from US Fed Chair Powell - tonight

S&P 500: up 26 points or 0.51%

Dow: up 76 points or 0.2%

Nasdaq: up 92 points or 0.58%

Dollar: up 0.95% to 65.65 US cents

Iron ore (Dalian): down 0.23% to US$122.44

Brent crude: up 92 US cents or 1.12% to US$82.96

Gold: up US$16.30 or 0.8% to US$2,158.20

NYSE Arca Gold Bugs: up 1.74%

Bitcoin: up 8.17% to US$66,965

Copper (LME): up 0.64% to US$8,546

Nickel (LME): down 0.34% to US$17,585

Uranium (spot price): up 0.22% to US$94

Lithium carbonate (China spot): steady at US$14,921

Global X Lithium & Battery Tech ETF: up 2.95%

BHP: up 1.88% (US); up 1.17% (UK)

Rio Tinto: up 1.65% (US); up 0.97% (UK)