US-UK Trade Deal, More Earnings, Jobless Claims

Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Thursday, May 8.

State of Play

Stocks managed to close higher yesterday after the FOMC meeting was a non event, as expected. Overnight came news that the US and UK would sign a trade deal, the first such agreement since Liberation Day. As we eye or board of indicators for signs of direction at 0655 ET, this is helping risk appetite:

• Stock index futures are pointing to gains, with the Nasdaq up 1.5% and S&P 500 futures 1.1% to the good;

• Cryptos are rising as well on this news, with Bitcoin up 3% to edge close to $100,000 again

• Commodities are mixed. WTI crude oil continues to climb, up 1.8% to trade north of $59/barrel but copper is down 1.5%. Gold and silver are dropping as well, gold by 1%;

• Bonds aren’t doing anything. The 10-year yields 4.31%.

Cover art by author via Grok AI