Day trading pre-market open May 25

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

Outlook for the day: Negative. Futures action implies the ASX 200 could test eight-week lows following a fourth loss for the Dow and multi-month lows in several hard commodities.

ASX futures: down 31 points or 0.43%.

Overnight themes:

• US stocks retreat as a June 1 deadline to avoid a federal default nears without a deal to raise the debt ceiling. The Dow falls to a fourth straight loss.
• Republican House Speaker Kevin McCarthy says "things are better than they were yesterday", but a number of issues remain unresolved. Negotiations will continue this morning.
• Treasury Secretary Janet Yellen says a default in early June is "highly likely" and she sees "stress in financial markets".
• The minutes from this month's Federal Reserve meeting show policymakers felt the argument for further rate hikes "had become less certain".
• European stocks slump after an unexpected rise in core inflation in the UK points to higher rates.
• Volatility climbs to a three-week high. The Australian dollar drops to a six-month low as traders retreat to the perceived safety of the greenback. The surging greenback undermines dollar-denominated commodity prices, including iron ore and base metals.
• BHP and Rio Tinto slump to six-month lows in overseas trade after iron ore drops below US$100 a tonne in China and Singapore and copper trades at its weakest since November. Nickel and aluminium also hit 2023 lows.

Key events today:

• US GDP, unemployment claims - tonight

S&P 500: down 30 points or 0.73%

Dow: down 256 points or 0.77%

Nasdaq: down 76 points or 0.61%

Dollar: down 1.08% to 65.42 US cents (6-month low)

Iron ore (Dalian): down 4.6% to US$98.74

Brent crude: up US$1.52 or 1.98% to US$78.36

Gold: down US$9.90 or 0.5% to US$1,964.60 (3rd straight loss)

NYSE Arca Gold Bugs: down 2.25% (2-month low)

Copper (LME): down 2.6% to US$7,891 (6-month low)

Nickel (LME): down 0.74% to US$20,755 (8-month low)

Global X Lithium & Battery Tech ETF: down 1.22%

BHP: down 4.05% (US); down 2.99% (UK) (6-month lows)

Rio Tinto: down 2.84% (US); down 2.47% (UK) (6-month lows)