Day trading pre-market open May 1

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Negative following heavy falls on Wall Street and declines in key commodities.

ASX futures: down 92 points or 1.2%


Overnight themes:

• US stocks tumble as rising wage pressures and deteriorating consumer confidence unsettle investors ahead of tonight's Federal Reserve interest rate decision.
• The Dow caps its worst month since September 2022 with a 570-point loss. The S&P 500 sheds 1.57%. The Nasdaq gives up 2.04%.
• Treasury yields jump after a Labor Department report shows wages and employment benefits increased 1.2% last quarter, adding to inflationary pressures. Economists polled by Dow Jones expected growth of 1%.
• "On balance, today's reading is not the end of the world for the Fed, but it is yet another data point that suggests the inflation slowdown that began this time last year stalled out in the first quarter of 2024" - Michael Pugliese, senior economist at Wells Fargo (per Reuters).
• Adding to the gloom, a separate report shows consumer confidence contracted last month to its weakest in a year and a half. The Conference Board's confidence index sinks to 97 from 103.1 in March.
• "Elevated price levels, especially for food and gas, dominated consumer’s concerns, with politics and global conflicts as distant runners-up" - Dana Peterson, chief economist at the Conference Board.
• The combination of stubborn inflation and strong economic data has forced financial markets to downgrade bullish rate expectations for the year ahead. Markets are now pricing in just 31 basis points of cuts this year, down from 150 at the start of 2024.
• All 11 S&P sectors decline, led by energy -2.89%, consumer discretionary -2.66% and tech -2.16%. Health fares least worst with a loss of 0.11%.
• Last night's losses seal solid monthly losses for the major share benchmarks. For the month, the Dow lost 5% (worst since September 2022). The S&P 500 and Nasdaq shed 4.2% and 4.4%, respectively (worst since September 2023).
• A surging US dollar dents dollar-denominated commodity prices. An index of US gold miners slides 4.6% after gold sheds 2.3%. Copper drops 1.57%, falling back under US$10,000 a metric ton. Tin, aluminium, zinc and lead also decline in London.
• The Australian dollar falls 1.3% against the greenback.
• Oil tallies back-to-back losses amid reports of progress in ceasefire talks between Israel and Hamas. Brent crude eases 0.6%.
• Iron ore wraps up its best month since last June with a minor dip ahead of China's May Day public holidays. Benchmark ore eases 0.1% on the Dalian Commodity Exchange yesterday. For the month, prices lifted 16.6%.

Key events today:

• China public holiday (today through Sunday)
• US interest rate decision, statement, press conference - tonight
• US manufacturing, job openings - tonight

S&P 500: down 80 points or 1.57%

Dow: down 570 points or 1.49%

Nasdaq: down 325 points or 2.04%

Dollar: down 1.3% to 64.75 US cents

Iron ore (Dalian): down 0.1% to US$120.65

Brent crude: down 54 US cents or 0.61% to US$87.86

Gold: down US$54.80 or 2.3% to US$2,302.90

NYSE Arca Gold Bugs: down 4.64%

Bitcoin: down 4.64% to US$60,033

Copper (LME): down 1.57% to US$9,976.50

Nickel (LME): up 0.1% to US$19,225

Uranium (spot price): up 1.11% to US$90.75

Lithium carbonate (China spot): up 0.82% to US$15,433

Global X Lithium & Battery Tech ETF: down 2.45%

BHP: down 2.9% (US); down 1.2% (UK)

Rio Tinto: down 1.27% (US); up 0.27% (UK)