Day trading pre-market open May 6

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.


Outlook for the day: Positive ASX futures point to early relief for Australian investors after a retreat in oil helped US stocks hit fresh heights. The Australian market has fallen in ten of the last eleven sessions.

ASX futures: up 38 points or 0.44%


Overnight themes: ​

• Two of Wall Street's three major stock benchmarks posted records as chip stocks rallied and Washington insisted that a ceasefire was holding in the Middle East, helping to lower oil prices.​
• The S&P 500 rallied 0.81% to a new closing high as a broad rally lifted all 11 sectors. The Nasdaq Composite also closed in record territory, rising 1.03%. The Dow Jones Industrial Average advanced 356 points or 0.73% but has not reset its high since the start of the US-Iran war. ​
• Oil retreated as Washington said the fragile ceasefire in the Middle East was holding despite clashes in the Strait of Hormuz and disputed reports of attacks on the United Arab Emirates. Prices fell as the Defense Secretary Pete Hegseth and the Chair of the US Joint Chiefs of Staff, General Dan Caine, doused fears of a return to open conflict. Caine said Iranian attacks on shipping in the strait and on the UAE did not constitute a breach of the ceasefire because Iran had not engaged in "major combat operations". “Since the ceasefire was announced, Iran has fired at commercial vessels nine times and seized two container ships, and they’ve attacked U.S. forces more than 10 times – all below the threshold of restarting major combat operations at this point,” Caine said. Hegseth said, “The ceasefire is not over.” Brent crude settled US$4.57 or 3.99% lower at US$109.87 a barrel. US oil declined 3.9% to settle at US$102.27. Tehran accused the US of undermining regional security and indicated it would continue to respond to US attempts to reopen the strait to commercial shipping. “We know full well that the continuation of the status quo is intolerable for America; while we have not even begun yet,” Iran’s parliament speaker and chief negotiator, Mohammad Bagher Qalibaf, said. Iranian sources also denied carrying out attacks on the UAE. ​
• The AI trade continued to drive the Nasdaq higher. The PHLX Semiconductor Index jumped 4.23% to a record as AMD rallied ahead of this morning's trading update, and Intel jumped on reports that Apple will recruit the firm to provide processors for its devices. ​
• US stocks have returned to record levels as a positive earnings season reassured investors that fundamentals remained strong. Aggregate earnings growth among S&P 500 companies has been 28% year-on-year, according to LSEG. "Markets are following fundamentals. Earnings are coming in pretty strong, and the expectation is that will carry forward into the rest of the year," Tom Hainlin, an investment strategist at U.S. Bank Wealth Management, told Reuters. "Business spending remains strong, whether it's on AI or other productivity tools, and consumers continue to spend." Zachary Hill, head of portfolio management at Horizon Investments, told CNBC: “We’ve seen just incredible earnings from not just the megacap tech but also the broad-based S&P 500, or even the small-cap indices within the US... The market is largely over the Strait of Hormuz situation. I think it would take a material change in the facts on the ground or a really large spike in the price of oil for the market to get re-engaged with the back and forth of that conflict.” ​
• The rally was paced by the materials sector +1.67% and by tech +1.63%. While all 11 sectors closed green, the utilities and financial sectors were just above flat, up 0.01%.​
• Gold bounced off its weakest level in more than four weeks as a dip in oil prices soothed concerns about inflation and encouraged bargain-hunters. "We are seeing some bargain hunting after the recent selloff, and oil prices easing are also providing support. The market ⁠is going to continue to watch the headlines, but we could see focus shift a little towards economic data," Jim Wyckoff, market analyst at American Gold Exchange, told Reuters. "Gold bulls need a significant fundamental spark to regain their footing," he added. Spot gold was lately up US$32.89 or 0.73% to US$4,556.08 an ounce. Earlier, US gold futures settled US$35.20 or 0.8% ahead at US$4,568.50. Silver, platinum and palladium also rose. ​
• Copper climbed off a three-week low when the London Metal Exchange re-opened after Monday's May holiday. Benchmark LME copper rallied 0.79% to US$13,099 a metric ton during a broadly positive session for industrial metals while the Shanghai Futures Exchange remained closed for a five-day holiday. US copper fared even better, bouncing 2.4% to US$5.94 a pound, reversing Monday's fall. ​
• Gold ​
• Iron ore closed little changed ahead of the return of Chinese buyers today following the conclusion of the five-day May national holiday. Benchmark ore on the Singapore exchange inched up 0.04% to US$108.55 per metric ton. ​

Key events today: ​

• US private payrolls - tonight ​

S&P 500: up 58 points or 0.81%

Dow: up 356 points or 0.73%

Nasdaq: up 258 points or 1.03%

VIX: down 4.98% to 17.38

US 10-year treasury yield: down 1.5 points to 4.427%

Dollar: up 0.24% to 71.84 US cents

Iron ore (Singapore): up 0.04% to US$108.55

Brent crude: down US$4.57 or 3.99% to US$109.87

Gold (futures): up US$35.20 or 0.8% to US$4,568.50

Gold (spot): up US$32.89 or 0.73% to US$4,556.08

NYSE Arca Gold Bugs: up 0.05%

Silver (spot): up 10 US cents or 0.14% to US$72.82

Bitcoin: up 2.17% to US$81,666

Copper (LME): up 0.79% to US$13,099

Nickel (LME): up 1.13% to US$19,630

Lithium carbonate (China battery grade): Steady at 22,823 yuan (China markets closed)

Global X Lithium & Battery Tech ETF: up 1.53%

Antimony (USA): Steady at US$16.50 per lb

Uranium (spot): down 0.12% to US$86.45

Global X Uranium ETF (URA): down 1.04%

BHP: up 1.76% (US); up 0.28% (UK)

Rio Tinto: up 1.9% (US); down 0.19% (UK) ​