Tech Stocks Lead Higher as Inflation Headlines Wane

Equities

Futures tied to major US stock indices raced higher during the first trading session of the week led by tech stocks. The US Treasury yields eased further hinting at calming investors' nerves on inflation ahead of the PCE index later this week. Earlier this year, the rising inflation fears drove US Treasury yields higher, weighing heavily on tech stocks which are usually highly leveraged. On the other hand, some other companies that benefit from the economic re-opening outperformed. The tech-heavy Nasdaq rose to a two-week high 13736, the S&P500 futures rallied to 4211, and the Dow Jones Industrial Average futures advanced to 34481.

USD

The dollar index, which measures the greenback against a basket of major currencies, extended losses, falling to 89.53, the lowest since early January. Traders are leaning more towards the idea that the Federal Reserve will keep the monetary policy settings unchanged as the inflation spike looks transitory. On the other hand, the economic recovery is underway in the United States, the United Kingdom, and Europe which is also boosting risk appetite, and flowing funds out of dollar safety. The EURUSD marched higher to $1.2262, the GBPUSD rose to $1.4211, and the USDJPY dipped to 108.55.

Metals

Precious metals prices inched higher as the dollar and treasury yields continued lower. The price of a gold ounce rose to $1887, and the price of a silver ounce hovered near $27.75, while palladium extended drop to $2730.

Oil

Oil prices settled sharply higher for the second consecutive day supported by positive risk sentiment. There are some chatters that the deal between the World's superpowers and Iran is still facing obstacles. On the other hand, the economic activity seemed to rebound sharply during the past couple of weeks, raising optimism over oil-demand recovery. The West Texas Intermediate crude July contract rose to $66.33, and the Brent blend July contract advanced to $68.87.

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