Wake Up Wall Street (SPY) (QQQ): Risk on to dominate with one more rally to see out 2021

Ivan Brian FXStreet

Here is what you need to know on Tuesday, December 7:

Equity markets should return to the rally theme of 2021 on Tuesday as more evidence mounts that Omicron is less severe than its predecessors. Bitcoin is our default risk barometer, and it has regained its footing above $50,000 after falling as low as $40,000 over the weekend. Stocks rallied sharply on Monday in what was largely well-mannered and broad-based buying, but the riskier names were left out. Expect that to be corrected today and meme stocks could roar back into life as the week progresses. Yields are moving higher, but this is a good thing as the market discounts Omicron fears. The yield curve still needs to steepen slightly.

The dollar is likely to bull itself up again now that the crisis appears over and is already back to 1.1250 versus the euro. Bitcoin is at $51,100, gold trades at $1,783, and oil is back to nearly $72. All is well again, rally on!

See forex today

European markets are surging: Eurostoxx +2.2%, FTSE +1.1% and Dax +2%.

US futures are also strong: S&P +1.3%, Dow +1% and Nasdaq +1.8%.

Wall Street (SPY) (QQQ) stock news

Microsoft (MSFT): EU antitrust regulator to take a closer look at $16 billion Nuance deal.

Glaxo Smithkline (GSK), Vir Biotech (VIR): new data show its antiviral treatment works against all Omicron mutations.

American Airlines (AAL) CEO to retire in March.

Intel (INTC) to take Mobileye public in the US in the middle of next year. Mobileye is involved in self-driving tech. The deal could be worth up to $50 billion, according to Reuters.

AutoZone (AZO) earnings beats on top and bottom lines.

Tesla (TSLA): UBS says no rival to come close in 2022 as it ups price target. CNBC.

Constellation Brands (STZ) building new brewery in Mexico, according to WSJ.

Bumble (BMBL): JPMorgan upgrades, shares rally 6% premarket.

MongoDB (MDB) up 20% premarket on strong earnings and guidance.

Solar Edge (SEDG) up 9% as it moves to S&P 500 on December 20.

Coupa Software (COUP) down 7% premarket on earnings.

Upgrades and downgrades

Source: Benzinga Pro

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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.

GBP/USD trims gains, back to around 1.3500

GBP/USD now surrenders part of the earlier move to multi-week peaks around 1.3530 and comes close to the 1.3500 support on Monday. Cable’s uptick comes in tandem with decent gains in the Greenback, always amid persistent uncertainty lingering over the reopening of the Strait of Hormuz and US-Iran talks.

EUR/USD deflates to 1.1540

EUR/USD begins the week on the back foot, retesting the 1.1540 zone as the NA session draws to a close. The better tone in the US Dollar weighs on the risk complex, sparking the daily correction in spot, always on the back of unabated effervescence in the Middle East.

Gold surges past $4,400, hitting fresh two-month highs

Gold climbs further beyond $4,400, touching its highest level since June 5 in the Asian session on Tuesday. Easing Fed rate hike expectations continue to drive flows towards the non-yielding bullion. Meanwhile, inflation risks stemming from volatile oil prices back the case for at least one rate hike in 2026, which supports the US Dollar and might cap the precious metal ahead of the crucial US CPI report on Wednesday.

Ethereum: SharpLink reports loss as BitMine continues share buybacks and ETH acquisitions

SharpLink reported $394.3 million in Q2 net losses following heavy declines in the crypto market, over a 3.5x decline from the $103.4 million losses in Q2 2025, according to a filing on Monday. The losses comprise $321 million in unrealized crypto losses on its ETH holdings and $76.1 million in impairments on its liquid staking tokens LsETH and weETH.

RBA set to hold interest rate at 4.35% as softer inflation cools hike bets

The Reserve Bank of Australia is on track to keep the Official Cash Rate (OCR) steady at 4.35% for the second consecutive meeting on Tuesday. The decision will be announced at 04:30 GMT, accompanied by the Monetary Policy Statement and updated economic forecasts. RBA Governor Michele Bullock’s press conference will follow at 05:30 GMT.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.