Stock futures climb as online traders send silver

US stock futures climbed on Monday, suggesting that the major benchmark would recover some ground after its worst week since October. Silver prices rose.

Futures tied to the S&P 500 rose 1.2%. Tech-Heavy Nasdaq-100 advanced 1.2% related contracts, and those tied to the Dow Jones Industrial Average gained 0.9%.

A grass cab volatility index of tensions in the US stock market fell more than 6% on Monday. But it remains high after rising 45% in January. Some investors expect fluctuations this week as many hedge funds have already reduced their position on the stock which has attracted a lot of attention on the internet.

In premarket trading, some of the most traded stocks among individual investors recently raised gains. AMC Entertainment Holdings AMC 53.65%

The market stayed up 17% on Monday before opening, while headphone manufacturer CoS gained 2%.

“There is always a desire on the part of investors, in financial markets, to get rich quickly and so you can still be isolated, in which you move with the volatile performance of some assets,” Mark Dowding, chief Investment Officer in BlueBay Asset Management.

He said that there is a possibility of continuing its rally in the wider stock market this year. “We think the markets are going to do really well in the near term because you hope the economy is going to get better and we have a lot of policy support,” Mr. Dowding said.

The recent drop in US Kovid-19 transition rates will support market sentiment and allow the shares to recover some of Friday’s losses, said Patrick Spencer, managing director of US investment firm Baird. There was a decrease in newly reported coronovirus cases on Sunday, the day before hospitalization and death.

“People were going very conservatively over the weekend, and the news of the Coronovirus and the central bank continuing the excitement would add to the momentum,” Mr Spencer said. “You’ve still got a lot of cash on the sides wanting to get back on the market.”

A wave of fresh enthusiasm from online traders led to the fall in silver prices. The move indicates that the global financial market is likely to grow in at least some pockets in the second week to counter the recent volatility.

The most actively traded silver futures rose 11% to $ 30.13 per troy ounce, its highest level since February 2013. The precious metal has been found in recent sessions after users posted on Reddit’s Volcritbats forum about executing “short squeeze”. Reducing recent gains in other stocks like GameStop and AMC. This suggests that different investors are taking hedge funds who are betting on silver prices.

Wall Street has been in a tizzy over GameStop’s stock this week, as members of Reddit’s popular WallStreetBets forum encouraged bets on the video game retailer. The WSJ explains how options trading is boosting action and what is at stake.

“I completely underestimated it,” said Commerzbank commodity analyst Carson Fritch. “I can’t imagine that it could ever happen in a serious and big market like silver.”

In bond markets, the yield on the 10-year Treasury note fell from 1.090% to 1.077% on Friday. Yields fall when prices rise.

Investors’ corporate earnings season continues to be monitored this week with 111 companies from the S&P 500 index. Results from large technology companies, including and Alphabet, are due on Tuesday.

Due to the Institute of Supply Management’s manufacturing index for January, 10am ET, US factory activity is expected to continue expanding, albeit at a slower pace than in earlier months.

Foreign, pan-continental Stokes Europe 600 advanced 1.4%.

In Asia, benchmark indices closed higher. South Korea’s Kospi gained 2.7% and Hong Kong’s Hang Seng closed up 2.2%. China’s Shanghai Composite grew 0.6%.

GameStop and other stocks and assets have been volatile as online investors place large bets on the Reddit forums.


Andre M. Chang / Zuma Press

write to Caitlin Ostroff at [email protected]

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