The stock market is trying to buck the weekly trend Friday, starting with solid gains.
The last hour of trading has been dominated by sellers, though, and investors may be reluctant to commit long over a weekend of potential Elon Musk tweets.
“At one point in the New York afternoon (Thursday), the S&P 500 had been down -1.94% at the lows, which left it just shy of a -20% decline since its all-time closing peak that would mark the formal start of a bear market,” Deutsche Bank’s Jim Reid said.
But even if the rally sticks today, “the major losses we’ve already seen this week mean it would still be the first time in over a decade that the index has posted 6 consecutive weekly declines,” he said.
Also bucking the weekly trend are Treasuries. The 10-year yield is up 10 basis points to 2.92%. The 2-year is up 10 basis points to 2.62%.
During these recent big yield moves, support for the 10-year came in around 2.8% while resistance was seen right around 3.2%, traders said.
And crypto is finally catching a bid, with bitcoin reclaiming the $30K level.
“The latest crypto-hyperinflation should not cause market contagion,” UBS’ Paul Donovan said. “While the media may refer to crypto bros as ‘investors’, they are in reality gamblers; we do not worry about equity contagion when someone loses money playing roulette at Monte Carlo. The same applies to cryptos.”
Still, many people referred to those creating synthetic CDOs based on mortgage tranches as gamblers as well.
After the start of trading, the University of Michigan releases its early measure of May consumer sentiment. Economists predict a small drop to 64.
“This is a fun statistic, not because it says anything about sentiment (a dubious assertion), but because it shows the gulf of political polarization. Democrats and Republicans live in the same economy, but report that they inhabit different economic planets,” Donovan said.
Among individual stocks, Twitter has pared the worst of its premarket losses after Elon Musk tweeted the deal is now on hold.
See the stocks making the biggest moves this morning.