==Futures Jump, Gold Soars As Dollar Destruction Accelerates
Wed, 08/05/2020 - 08:09
Everyone is piling into everything.
That's probably the best way to describe the market frenzy this week which has seen an all time high in the Nasdaq and gold, an all time low 10Y yields, and an S&P that is just shy of its all time highs.
Sure enough, on Wednesday, gold jumped to a new record high pushing further past $2,000 as the dollar tumbled on U.S. Treasury yields falling to fresh all time lows, and expectations of more stimulus measures for the pandemic-ravaged global economy.
S&P futures rose and European stocks climbed to a one-week high as investors focused on U.S.-China trade discussions and American lawmakers making progress on an economic aid package.
U.S. stock futures rose on Wednesday after Disney squeezed out a quarterly profit despite taking a $5-billion charge due to the pandemic, while investors awaited data on private payrolls and the service sector to gauge the country’s economic health. Square rallied in the pre-market trading as revenue surged. Moderna Inc rose 2.3% ahead of its quarterly results. Activision Blizzard raised its full-year forecast for adjusted sales encouraged by a pandemic-driven surge in gaming. Its shares fell 1.4% after closing at a record high on Tuesday.
Investors had been concerned about signs that the U.S. economic activity is stalling amid a surge in COVID-19 infections in parts of the country, strengthening the case for more fiscal aid, although with the S&P just shy of all time highs, clearly these concerns have eased. White House negotiators on Tuesday vowed to work “around the clock” with congressional Democrats to try to reach a deal on coronavirus relief package by the end of this week.
Pressure is growing on Republicans and Democrats to resolve differences over a new U.S. virus relief package. Treasury Secretary Steven Mnuchin said the goal is to strike a deal on legislation by the end of the week…
https://www.zerohedge.com/markets/futures-jump-gold-soars-dollar-destruction-accelerates