One day after the S&P broke its near-record winning streak of 7 consecutive all time highs, futures resumed their grind higher as world stocks steadied below recent record peaks, while the Nasdaq jumped to a fresh all time high as the continued drop in Treasury yields supported tech-heavy growth stocks, with investors eyeing today’s June FOMC minutes for clues on policy support going forward. At 730 a.m. ET, Dow e-minis were up 21 points, or 0.06%, S&P 500 e-minis were up 8.25 points, or 0.19%, and Nasdaq 100 e-minis were up 89.25 points, or 0.59%. 10Y yields slipped for the seventh straight session, amid concerns about the economic outlook and coronavirus variants, helping Nasdaq futures rise premarket.
In per-market trading, oil giants Exxon, Schlumberger, ConocoPhillips, Marathon Oil, Occidental and Halliburton Co rose between 0.7% and 3.4%, tracking crude prices, which rebounded after Tuesday’s rout. China’s market regulator said it has fined a number of internet companies including Didi Global, Tencent and Alibaba for failing to report earlier merger and acquisition deals for approval. As a result, the turmoil in Didi (DIDI) shares continued with the stock falling another 4.3%, while Alibaba edged 0.4% higher. Chinese hip-hop promoter Pop Culture Group (CPOP) surges 31% in the latest volatile move since the stock debuted last week. OncoSec Medical (ONCS) shares rally 38% in premarket trading after the firm entered a pact with Merck for a metastatic melanoma treatment trial.
Markets are stabilizing after Tuesday’s mini drop, which was sparked by concerns about the outlook for the global economy as new virus variants emerge, which sent 10Y yield plunging. Investors are taking some heart from soft U.S. data that suggests the Fed will continue offering monetary support for now. But with global stocks near all-time highs and inflationary pressures in focus, they’ll pay close attention to the wording of the minutes from the central bank’s last meeting for clues on the policy path.