Wake Up Wall Street (SPY) (QQQ): Omi can this market rally?

Ivan Brian FXStreet

Here is what you need to know on Monday, December 6:

Equity markets look set to start the week on a positively nervous note as investors look for more information on the omicron variant. We do feel the market reaction to omicron is overdone, markets needed a correction, omicron just provided the excuse. Tech remains highly elevated and therefore highly risky in the current environment. Risk assets remain exactly that as witnessed by Bitcoin over the weekend. $40,000 just about held and the bounce is on but for how long? Powell punched a hole in transitory and tapering last week and added to Vix elevation. The Fed is likely to remain on course to now complete its tapering by early Q2 2022, nearly a full quarter ahead of prior expectations. This one in particular has got equity markets in a tailspin. We have noted the strong correlation between the Fed balance sheet and the S&P 500 before so can this correlation end peacefully? We wait with bated breath but certainly, the yield curve flattening is not a positive.

The dollar is a touch stronger this morning as currency safe havens lose ground. Eurodollar is 1.1292 now. Oil is 3% higher at $68.32 and Gold steady at $1778. Bitcoin was anything but steady over the weekend but is now back to $48,500.

See forex today

European markets are higher: EuroStoxx +0.7%, FTSE +1.1% and Dax +0.5%.

US futures are also higher apart from tech: S&P +0.35, Nasdaq -0.4% and Dow +0.7%.

Wall Street (SPY) (QQQ) stock news

Rivian (RIVN) catches a host of research notes as the blackout ends. see more.

Tesla (TSLA), Elon sells more stock as TSLA teeters near $1,000. see more.

Didi (DIDI) delisting news hits other Chinese names hard.

Alibaba (BABA) names a new CFO.

Lucid (LCID) gets a subpoena from SEC, see more.

Nvidia (NVDA), EU pauses investigation due to more info needed. FTC issued a suit last week. See more.

Kohls (KSS) Engine Capital urges the sale or separation of eCommerce business-Reuters.

Snowflake (SNOW) Credit Suisse raises the price target.

Coinbase (COIN) down 6% premarket on bitcoin wobbles.

AMC offering new NFT but shares fall further, down 3% premarket.

Upgrades and downgrades

Source: Benzinga Pro

Economic releases

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.

AUD/USD keeps the red near 0.6950 after weak Aussie jobs data

AUD/USD holds losses near 0.6950 on disappointing Australian jobs data, extending the previous day's retracement slide from the monthly high and hitting a fresh weekly low during Thursday’s Asian session. Meanwhile, declining US bond yields drag the US Dollar away from the April 2025 high, touched after Wednesday's hot US CPI, helping limit losses for the currency pair.

USD/JPY slides back below 158.00 as USD reverses post-CPI gains

USD/JPY extends the previous day's pullback from a three-week high, attracting follow-through selling and sliding below 158.00 during Thursday's Asian session. Traders remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. The US Dollar, meanwhile, reverses Wednesday's hot CPI-led gains to April 2025 highs as US bond yields retreat on China bond-buying talk, further pressuring the pair.

Gold shrugs off hot US PPI as risk aversion drives bond yields lower

Gold attracts fresh buying on Thursday as weakness across global equities, driven by mounting concerns over AI-related investments, triggers a sharp pullback in US Treasury yields and drags the US Dollar lower from fresh year-to-date highs.

Ripple clings to $1.30 support as downside risks intensify

Ripple is stuck in a bearish trend, trading near $1.30 on Thursday. The remittance token’s bearish shift reflects the broader cryptocurrency market, which remains under heavy selling amid concerns about accelerating inflation in the US.

Budget preview: Is Healey impressing the bond market?

There is less than 2 weeks to go before the Chancellor delivers his first budget. Unusually for the UK, the economic and financial backdrop to this budget is upbeat. UK bonds have been rallying, the FTSE 100 is the top performing major stock index this week, and the Pound is also stabilising versus the Dollar.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.