Brussels, Europe Brief News –Dow Jones futures jumped Tuesday morning sharply, as did S&P 500 and Nasdaq futures in the bear market. Despite falling to a new 18-month low over the weekend, the Bitcoin price has risen back over the critical $20,000 threshold. The bear market accelerated last week as investors became increasingly concerned that the Federal Reserve might be compelled to force an economic recession in response to inflation.
Bear Market
Investors should remain on the sidelines as the major indices approach their pre-Covid highs. Don’t get too enthusiastic by one-day rallies, including Friday’s tech-led surge or significant premarket gains. Rather, get ready to capitalize on the next persistent increase.
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There aren’t many equities that are going to hold up, but here are five that are: BYD (BYDDF), Vertex Pharmaceuticals (VRTX), fertilizer and lithium player SQM (SQM), Eli Lilly (LLY), and Enphase Energy are all Tesla (TSLA) competitors (ENPH). All seem to have comparative value lines at or near their peaks. The RS line, shown in blue in the charts, measures a stock’s performance relative to the S&P 500 index.
BYD stock is approaching a specific purchase point. Following large increases, SQM stock is seeking assistance at its 50-day moving average. On Friday, ENPH stock reclaimed that critical level. Vertex and Eli Lilly are both trading near their 50-day moving averages. The IBD 50 includes Eli Lilly and SQM shares. BYD was the IBD Stock of the Day on Friday.
Also Read: Dow Jones Futures: Bitcoin Breaks To $20,000
Additional Information
Dow Jones prospects gained 1.4 percent compared to fair value. The S&P 500 futures rose 1.55 percent, while the Nasdaq 100 futures rose 1.6 percent. The yield on the 10-year Treasury note increased by 4 basis points to 3.28 percent. Crude oil prices increased by 2%. Natural gas futures tumbled roughly 6%. Markets in the United States were closed on Monday to observe the Juneteenth holiday, but some other exchanges worldwide were operating.
Fed Governor Christopher Waller stated on Saturday that he prefers another 75-basis-point rate rise at the Fed’s late July meeting. Markets presently regard it as a high possibility, but it is not fully priced. Whereas the Fed raises interest rates, it also begins to shrink its balance sheet.
However, St. Louis Fed President James Bullard stated Monday that the central bank does not need to go as far as some believe. Note that overnight trading in Dow futures and other markets, in contrast to the bear market, does not always transfer into trade in the next normal stock market session.
