US Equity futures are mildly higher. The US dollar lifted out of lows after yesterday tracking the sharp drop in longer-dated Treasury yields. The USDIndex recouped a large part of yesterday’s decline in posting an intraday high at 90.32, having earlier printed a 2-day low at 89.96. The USA30 is 0.3% in the green, the USA500 is up 0.2% and the USA100 is just 0.06% firmer in pre-market futures trading. The USA500 improved 0.5% to a fresh record high close of 4,239.18 yesterday. The USA100 bounced 0.8% and the USA30 edged up 0.06% on Thursday, with both indexes holding just shy of all-time highs. The market continues to take the Fed at its word that the inflation spike will prove transitory, allowing low for long policy to go on for much longer and for tapering to begin later versus sooner. Moreover, a massive amount of liquidity still underpins stocks globally. As for fundamentals, the ongoing recovery both at home and abroad makes the case for equity bulls. The pull-back in rates since mid-May has also soothed nerves.
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Andria Pichidi
Market Analyst
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