US Stock Futures Rise After Records, Cryptos Go on a Wild Ride
10 May 2021 · 3rd Party Analysis
- Stock futures rise ahead of the opening on Monday, continuing the upside swing
- Altcoin rally takes Ethereum to $4,120 per coin, Dogecoin drops nearly 45% from its peak
Futures contracts inch higher on Monday in pre-market trading hours as investors remain optimistic that the economy is bound to rev up and accelerate toward recovery. Benchmark indexes look set to trade at or near records when regular trading on Monday kicks into gear. Dow futures indicate a higher opening by about 70 points, or roughly 0.2%, while S&P futures are unchanged and Nasdaq futures turned negative.
Monday’s pre-market climb in the Dow is a continuation of Friday’s strong performance that ended on an upbeat note with both the S&P500 and the Dow Jones Industrial Average closing at record highs. In the previous week, the 30-stock Dow Jones benchmark advanced 2.7%, while the S&P500 added 1.2% as investors rotated to real-economy stocks poised to benefit the most from the ongoing economic reopening. The tech-heavy Nasdaq Composite declined 1.5% over the last week as technology was largely pushed aside due to increased inflation concerns and the possibility for higher interest rates sooner than expected.
On Friday, a lackluster report was not convincing enough to offset a rally in equities as investors piled into stocks, triggering a rebound in tech shares and the growth sector. The Nasdaq Composite pushed higher by 0.88%, or 119.39 points, to end the session at 13,752.24. The broad-based S&P500 popped 0.74%, or 30.98 points, to close at a record of 4,232.60. The Dow Jones Industrial Average advanced 0.66%, or 229.23 points, also setting a record close of 34,777.76.
Despite a disappointing jobs report that showed employers added 266,000 jobs in April, investors increased their risk appetite and rushed into equities across the board. April’s figures significantly missed the forecasts of economists who predicted around 1 million new jobs. In addition, unemployment rose 6.1% from 6.0%, versus the consensus of 5.8%. In contrast, for the same period a year ago, the jobless rate in April 2020 stood at 14.8% when the pandemic hit and derailed the economy.
The jobs miss was largely unexpected as investors had ramped up bets that the economic recovery would continue to surge for yet another month fueled by government spending and vaccine rollout. In March, the US labor market added 916,000 new jobs. Still, main indexes ticked higher for a second consecutive week without any downside effects from the weak jobs data.
The Dogefather Influences Dogecoin Movements
On the cryptocurrency front, the altcoin season continues to sweep across the digital space. Ether, the second-largest cryptocurrency that powers the Ethereum network, advanced to a new all-time high today. This morning, the crypto token reached $4,120. Ether has been in a monster rally for the last 15 days without a single close in the red. Over that period, the digital asset has climbed 90%.
Dogecoin, the joke-coin founded in 2013 that advanced 26,000% for the last six months, was featured in Elon Musk’s SNL appearance. The self-proclaimed “Dogefather” was largely expected to push the asset’s price to $1 during his Saturday Night Live debut. Before the show, Dogecoin reached a record of $0.75. During and after the show, however, the meme-inspired cryptocurrency fell as much as 45% to levels around $0.42 per coin. Elon Musk called Dogecoin a “hustle” as part of his commentary that crypto enthusiasts had for days been waiting. Dogecoin now trades around $0.54.