US Stock Futures Rise but Fears of Second Wave Cap Gains


Major US stock-index futures kicked-off the week on a positive note as investors look forward to the reopening of the economy. Governments started to ease lockdown measures as the rate of new cases descended. However, the fears of having a second wave of COVID19 capped rally, especially as China started reporting new cases. The Dow Jones Industrial Average futures rose to 24469, the S&P500 futures rallied to 2946, and Nasdaq futures advanced to 9283.


The dollar index, which measures the greenback against a basket of major currencies, inched higher to 99.95 to recover partial losses incurred following the sluggish jobs report. The report showed that the US economy lost 20.5 million jobs in April, and the Unemployment Rate soared to 14.7%. However, the dollar found a boost from the demand for safety as investors feared another wave of Covid19. The EURUSD dipped to $1.0823, the GBPUSD fell to $1.2363, and the AUDUSD eased to $0.6515.


Gold prices edged higher, recovering some of Friday's losses amid growing chances of further stimulus. The White House reported that there could be another round of stimulus. The increased probability of another wave of Covid19 will also raise the likelihood of further stimulus. The price of a gold ounce rose to $1712, the price of a silver ounce ascended to $15.62, and palladium futures recovered to $1914.


Oil prices continued to trade in a tight range near a one-month high awaiting fresh fundamental drivers. Investors are optimistic over the reopening of the economy worldwide, which would boost demand levels, but they are also afraid of the effects of a second wave. The West Texas Intermediate crude June delivery hovered near $24/ barrel, and Brent blend July delivery held steady near $30/ barrel.

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