Stock Futures Extend Rally, Nasdaq Hits Record

Equities

Futures tied to major US stock indices extended their upside rally. The Fed's latest dot plot weighed on the Dow Jones and S&P500. However, the dip triggered buyers' interest, as the fundamentals continue to support the uptrend. The economic recovery is solid, and the Federal Reserve remains data-dependent to alter policy. The Fed Chairman Jerome Powell eased investors' woes over interest rate hikes as he testified before the House Select Subcommittee on the coronavirus crisis, reiterating that inflation will wane as it is transitory. The Dow Jones Industrial Average futures rose to 33960, the S&P500 rallied to 4246, and Nasdaq futures hit an all-time high of 14311.

USD

The dollar index which measures the greenback against a basket of major currencies tried to nurse losses earlier today, ticking higher to 91.90. The index came under pressure last night as the Fed chairman affirmed that inflation is transitory, and they are still away from hiking interest rates. Market participants are looking for additional economic data this week among them the PCE index, and fed officials' comments over policy. The EURUSD is currently trading above $1.1930, the GBPUSD hovered near $1.3987, and the USDCAD fell to 1.2300.

Metals

Precious metals prices continued to trade in a tight range, as investors awaited fresh drivers. The price of a gold ounce traded near $1780, the price of a silver ounce held steady below $26.00, while palladium recovered to $2604.

Oil

Oil prices inched higher as a private survey showed another drop in stocks. The American Petroleum Institute reported a decline of 7.199 million barrels in US crude oil, hinting that inventories are still on the draw, with demand picking up. The US Energy Information Administration will report the official figures later today. The West Texas Intermediate crude August contract rose to $73.34, and the Brent blend August contract rallied to $75.44.

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