February 2, 2021

Stock Futures Continue To Move Higher; Silver and XRP Plunge

Stock Futures Continue To Move Higher; Silver and XRP Plunge

Stock futures are set to begin the day where they left off things yesterday. All the major stock indices are trading higher as investors continue to bag some bargain. GameStop stock got battered again yesterday, and the stock fell further 30% yesterday. In the after-hour market hours, the stock continued its downtrend. It seems like that all the support and vibe have started to fizzle out for GameStop.

Today, investors are going to be more focused on earnings as big names such as ExxonMobil, Pfizer, Amazon, and Alphabet will report their earnings. Once again, traders are focusing on things that matter the most—economy and earning results.

The Dow Jones bagged more than 229 points yesterday; the S&P 500 advanced 1.61% while the Nasdaq surged 2.55% yesterday. The Russell 2000 index, which is more prevalent among retail traders these days, continued to stage more gains, and it scored gains of 2.53%. On the other hand, an enormous amount of wind came out of volatility out of the volatility index; the VIX fell 8.61% yesterday.

Silver

Investors are booking profit after a massive rally in silver prices over the last few days. Silver recorded two back to back weeks of positive gains on Friday, and yesterday, it had one of the biggest one-day percentage move since 2008. These were enough signals for investors to know that it is time for them to take some chips off the table. Today silver prices are down by 2%, and it seems like retail traders aren’t that enthusiastic as they were before. Reddit forums are also relatively less quiet on this issue.

We also had the statement from the CFTC chairman, who confirmed that the organization is closely monitoring the situation, which provided assurance to investors that there are fewer chances of things going off the rails like they did in GameStop circumstances.

Gold

As for the gold prices, we are not seeing much of momentum coming back as investors have started to back riskier assets. The current situation is typical under which traders know that they are going to get the biggest bang for their dollar in the equity markets. There is also less sense of fear among them as they know that policymakers are still very much determined to do whatever it takes to bring economic recovery back on track.

Fiscal Policies

On the fiscal front, traders are also optimistic about the stimulus package once again. This is chiefly because top Democrats in the House and Senate are rapidly bringing things in motion. They filled a joint 1.9 trillion budget measure yesterday, which means that they want to speed up things by bypassing Republicans.

Cryptos

The drama continues; Ripple XRP, which surged over 0.74 yesterday, quickly gave up all of its gains yesterday and fell below the 0.40 level. This particular coin is extremely volatile, and the main factor behind this volatility is the SEC’s ongoing investigation. As long as those allegations continue to hangover Ripple’s XRP, the coin is unlikely to stage some serious gain. However, if by any miracle, if the SEC accepts that XRP is not a security and it hasn’t violated any security regulation, XRP will literally rip the sky and climb towards its all-time.