US Futures Imply Slightly Higher Open to Start the Month

01 Jun 2021 · 3rd Party Analysis



In Summary

  • Stocks are poised to open higher after the long weekend to kick off June’s trading
  • A wild ride in everything from stocks to Bitcoin marked the month of May

US stock futures on Tuesday, the first trading day of June, are moderately higher in pre-market hours before the official opening after the long weekend. Futures contracts tied to the Dow Jones Industrial Average, the S&P500 and the Nasdaq Composite are all higher by about 0.1% each as US investors are getting ready to kickstart the session.
On Monday, the US stock and bond markets were closed in observance of Memorial Day, while relatively subdued trading in the US dollar narrated the currency market. The UK also took a break from trading as the UK market was closed for the Spring Bank Holiday.

The marginally higher levels in the main indexes in overnight trading came after a mixed month for US stocks. The S&P500 and the Dow Jones ended May in positive territory, while the Nasdaq Composite slid lower as tech shares struggled to gain traction amid reopening trades.

On the last trading day of the month, the S&P500 edged higher by 3.23 points, or 0.08%, to seal the month at 4,204.11. The broad-based index gained 0.55% in May, posting its fourth straight month of gains. The Dow Jones Industrial Average ended Friday with a move up by 64.81 points, or 0.19%, to end at 34,529.45. The 30-stock index also closed its fourth consecutive month in the green as it gained 1.9% in May. The Nasdaq Composite advanced 12.46 points, or 0.09%, to finish the month at 13,748.74. The tech-focused index suffered a 1.5% loss in May, logging its first negative months in seven.

Futures Follow Swing Trends

The month was defined by wild swings in every market from stocks, to commodities, to cryptocurrencies. Worries about inflation injected jitters in the stock market and ultimately jolted the tech sector as investors increased their risk appetite to economically sensitive shares poised to benefit from the ongoing reopening.

Meanwhile, meme-stocks staged a comeback in late May as traders and investors piled into shares of GameStop and AMC Entertainment. GameStop stock advanced more than 36% in May, when tumbled 12.71% during the last trading session on Friday. And AMC shot up as much as 38% in a high-speed dash on Friday, but closed the day down 1.5%.

On the cryptocurrency front, Bitcoin and alternative coins experienced another roller-coaster ride last month, this time even more severe than recent ones. The world’s largest digital asset ended the month lower by 35%, sliding more than $20,000 to close May at $36,600. Bitcoin went through its worst monthly performance since September 2011. Despite a difficult and challenging time in May, Bitcoin’s price remains positive year-to-date. Since the beginning of the year, the apex crypto token is up about 27% to the current market price of $37,300.

Gold, on the other hand, pushed higher in May and became one of the winning commodities. Considered a safe haven and a hedge against inflation, the precious metal advanced over 8%, or $137, to end the month at $1,905. This morning, gold made a new high, jumping to a five-month peak above $1,915.

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