Markets are at record highs as investors bet the Fed will keep this party going.
On Wednesday, the Federal Reserve will give the markets a deeper read on what it seems in the way of interest rates and whether or not it believes inflation is picking up. At present, the Fed continues to assume recent inflation is merely “transitory.” I disagree and believe last month’s Consumer Price Index should be a wakeup call.
Nonetheless, the Fed seems determined to avoid tapering…let alone raising rates. And, with that in mind…the stock market could go significantly higher before facing its inevitable reckoning.
Meanwhile, inflationary pressures are continuing to drive most all asset classes higher with oil trading at the highest level since 2018 in Monday’s premarket trading. Even cryptocurrencies were up, with Bitcoin trading above $39,000 again.
U.S. stock futures were up overall, with S&P futures trading at record-highs. Dow futures dropped slightly.
- S&P 500 futures: 4,238.75, +0.05%
- Nasdaq futures: 14,025.25, +0.28%
- Dow futures: 34,447.00, -0.04%
U.S. Dollar and Treasuries
10-year Treasury yields increased slightly after reaching the bottom of recent trading ranges. The dollar dropped.
- U.S. Dollar Index (DXY): 90.48, -0.09%
- 10-year Treasury yield: 1.462%
- 2-year Treasury yield: 0.160%
Stocks To Watch – Wild Memes
A Danish medical company Orphazyme is the latest meme stock to watch. The stock rocketed over 1000% over the weekend, on no apparent news from the company. The stock subsequently lost most of its gains, dropping form $69 to $10. In Monday’s premarket trading, it increased by 20% again.
Other meme stocks, including AMC, GameStop and Clean Energy Fuels were also up in premarket trading.
Enochian Bioscience has announced that the FDA has announced a Pre-IND request for a new HIV treatment. The stock has more than doubled in premarket trading.
- ORPH Orphazyme A/S ADR, $11.50, 23.26%, 3.2M (volume)
- AMC AMC Entertainment, $49.86, +0.93%, 2.52M (volume)
- CLNE Clean Energy Fuels Corp. $11.14, +3.06%, 284.4K (volume)
- GME GameStop Corp. Cl A, $234.00, 0.28%, 47.6K (volume)
- ENOB Enochian Bioscience $10.84, +145.80% 4.31M (volume)
Commodities To Watch
Oil reached 32-month-high as people as lockdowns are ending and people are starting to drive again. Gold fell as investors are still confident that the bubble won’t burst some time.
- WTI crude: $71.56, +0.92%
- Brent crude: $73.36, +0.92%
- Gold: $1,851.50, -1.49%
The global crypto market cap increased by 10.88% in the last 24 hours. Bitcoin is trading above $39,000 after Elon Musk backtracked on Bitcoin again.
- BTC: $39,338.38, +9.32%
- ETH: $2,459.72, +4.97%
- DOGE: $0.3227, +3.36%
- THETA: $9.10, +11.09%