Strong risk appetite boost meme stock trading [Video]
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Yesterday was a strong day in terms of meme trading and speculation; Donald Trump’s Truth Social flew with its own wings for the first time yesterday and rose up to 60% under the ticker DJT before settling 16% higher at the end of the session, Reddit also saw some nice intraday volatility.
Appetite for meme stocks and cryptocurrencies is back and that’s an important gauge for overall risk appetite. If all goes well, the S&P500 is set to print a fifth consecutive monthly gain – a thing that has not happened since 2013. The major risks to the rally is a renewed pullback of Federal Reserve (Fed) cut expectations and/or a possible deterioration in earnings expectations.
Elsewhere, US crude is under pressure this morning as the API report printed a surprise 9.3-mio increase in US oil inventories last week. Cocoa futures hit $10’000 per metric tone while Apple remained offered on slump in Chinese iPhone sales.
In the FX, the dollar index pushes higher due to mounting edginess before Friday’s core PCE print, the USDJPY is testing the Japanese officials’ limits near the 152 level, as the EURUSD is softer before Spanish inflation and Eurozone sentiment data.
Author
Ipek Ozkardeskaya
Swissquote Bank Ltd
Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.
