What you need to know before trading futures on Jan. 23rd:
By Mark O’Brien, Senior Broker
Stock Indexes:
Equity index futures rose today, powered by a rise in technology stocks after the new administration announced mammoth spending plans for artificial intelligence infrastructure, while the U.S. Dollar Index traded to a two-week low as tariffs were delayed.
Late on Tuesday, Pres. Trump announced that OpenAI, Japan’s SoftBank and Oracle will form a joint venture and invest up to $500 billion to build data AI centers. Shares of SoftBank surged 10.6% in Tokyo, Oracle gained 7.6% on Wall Street, adding to Tuesday’s 7.2% jump. The March E-mini Nasdaq lead U.S. stock index futures with a ±1.45% / ±300-point ascent, while the March E-mini S&P 500 gained ±.7% / ±40 points. The March E-mini Dow lagged somewhat with a ±.25% / 120-poing upswing.
Energy:
Oil prices eased to a fresh one-week low today as the market considers how the new administration’s proposed tariffs could affect global economic growth and demand for energy.
March West Texas Intermediate crude (WTI) traded 39 cents, or 0.5%, lower to settle at $75.44.
That puts WTI down for a fourth day in a row for the first time since November. Both crude benchmarks – WTI and Brent – closed at their lowest since Jan. 9 for a second day in a row.
Crude Oil numbers will be out tomorrow due to MLK holiday this past Monday.
Metals:
Gold futures (Feb.) prices traded to near three-month highs Tuesday, fueled in part by the weaker dollar and a seemingly lack of clarity around the new administration’s policy plans, which investors fear could trigger trade wars and elevate market volatility.
Feb. Gold added ±$7 to $2,766 per ounce as of this typing. Prices were at their highest since Nov. 5 when they hit their intraday high of $2,782.8. |
