Wake Up Wall Street (SPX) (QQQ): The bounce is on for stocks and Bitcoin as yields and Vix drop
Here is what you need to know on Tuesday, May 25:
Equity markets continue to remain underpinned as inflation fears continue to recede along with the 10-year yield. The wall of Federal Reserve speakers continues with Richmond Fed President Thomas Barkin taking his turn on the pulpit on Tuesday. Fed speakers have largely stuck to the prescribed doctrine that any inflation is transitory and the Fed has the tools to deal with it if it turns out not to be so. US House price data may debunk the transitory view as it hits 13.9% growth yearly. The big tech rebound continues with all in the green yesterday and Tesla signing in for a 4% gain. Elon talked to Bitcoin miners about renewable energy use and helped the cryptocurrency leader rebound toward $40,000, which supports crypto stocks.
Stay up to speed with hot stocks' news!
The dollar drops to 1.2260 versus the euro, Bitcoin retreats to $37,100, Gold is stable at $1,882, and Oil retraces from strong gains on Monday to just under $66.
European markets are higher, the FTSE is flat, the Dax is +0.6%, and the EuroStoxx is +0.15.
US futures are higher, the S&P is +0.3%, Dow is +0.2%, and the Nasdaq is +0.5%.
Nasdaq continues its recovery, led by big tech names. A strong support zone, highlighted, led to a strong bounce. Resistance at 13,679. If this breaks, then it takes the Nasdaq back toward thoughts of new highs. RSI and CCI are trending higher with price. MACD looks ready to give a crossover buy signal. Trend line support at 13,053 holds the bullish trend.
Wall Street top news
President Putin and President Biden due to meet in Switzerland shortly.
Nearly 30 industry groups form a coalition to fight President Biden's tax hikes.
US house prices rise 13.9% YoY.
Elon Musk tweets that he spoke to Bicoin miners about renewable energy usage.
EU imposes sanctions on Belarus after the forced landing of a Ryanair (RYAAY) aircraft.
Ford (F) has an investor day on Wednesday, May 26.
Moderna (MRNA) says its covid vaccine is 100% effective in teenagers, plans to seek FDA approval in June.
AMZN closing in on a deal to buy MGM Studios for near $9 billion.
Lordstown Motors (RIDE) shares dropped after the company says it needs to raise money.
Shake Shack (SHAK) upgraded by Wedbush and Goldman.
AZN AstraZeneca's proposed $39 billion takeover of Alexion Pharma (ALXN) is to be examined by UK competition regulators.
GOOGL fined by Russia for not filtering certain content, according to TASS.
United Airlines (UAL) says yields are improving ahead of expectations.
Apellis Pharma (APLS): positive data from late stage study in rare blood disorder, shares up 10% premarket.
UP Fintech (TIGR): EPS and revenue ahead of expectations, shares up 7% premarket.
TG Therapeutics (TGTX): FDA acceptance of license application for Ublituximab, shares up 6% premarket.
United Microelectronics (UMC) reports that Qualcomm has signed a foundry capacity deal with it. DigiTimes.
Make My Trip (MMYT): EPS and revenue ahead of estimates, shares up 5% premarket.
Canopy Growth (CGC): upgraded by MKM Partners.
Ups and Downs
Premarket movers
Source: Benzinga Pro
Economic releases
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
