Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Wednesday, May 7. Fed Day.
State of Play
Stocks dropped a bit yesterday but then positive earnings from AMD 0.00%↑ after the close helped sentiment overnight. So did news of meetings between US and Chinese trade officials on tariffs. As we eye or board of indicators for signs of direction at 0645 ET, investors appear cautiously optimistic as a result:
Stock index futures are pointing to gains. Small caps are leading things, usually a good sign. The Russell 2000 is up 0.9%. S&P 500 and Nasdaq both +0.5%;
Cryptos are also showing signs of life, with Bitcoin up 3% to trade around $96,800;
Commodities are mixed. The big move is in copper, and that is down, by 2%. WTI crude oil is up 0.6% to trade around $59.50/barrel. Gold and silver down a bit;
Bonds aren’t doing anything. The 10-year yields 4.31%.
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