Why Are Stock Futures Soaring Again?

Why Are Stock Futures Soaring Again?

The US stock futures are moving higher as traders feel a lot more optimistic about the dovish monetary support continuing from the Federal Reserve, after the weak US NFP data released on Friday. Looking at the US employment market, it is clear that the US labour market still has a deep hole to fill in. The employment numbers were terrible on Friday, and they were well below the market expectations. The vaccination process continues to roll on in the US, and the hope is that it will bring more people back into the employment market. Looking at the recent US readings, it seems like there are still seven to eight million people who are out of the employment market as compared to the pre-pandemic reading. 

UK Election and Coronavirus 

In the currency market, we see the Sterling gathering up more momentum after the weekend’s elections which strengthened Boris Johnson’s position as a Prime Minister. Londoners are happy that their existing Mayor, Sadiq Khan, won the election for the second time. 

Scotland’s election results confirmed that the Pro-Scotland party sealed the victory, and this means that the battle for independent Scotland’s future will continue. Nicola Sturgeon’s Scottish National Party failed to seal the outright majority. 

In addition to this, optimism continues to grow on the coronavirus vaccine front as England plans to ease off coronavirus-related restrictions on May 17th. The coronavirus infection rate has reached its lowest reading since September, and more than a third of people in the UK have received both doses of vaccine. Nearly two-thirds of UK adults have received their first dose of vaccine. Having said that, the under 40’s are still waiting for their vaccine’s first shot, and it may be several weeks before they receive anything. 

Ethereum Added Three Zeros 

The second-largest crypto coin, Ethereum, finally added three zeros after four over the weekend and crushed the 4,000 price level. The good thing is that it is still only the beginning for this rally as money continues to pour into Ethereum. In fact, there is strong evidence that traders and investors are actually liquidating small positions in Bitcoin and putting that money into Ethereum as they believe that this coin is still massively undervalued. 

There is no doubt that Ethereum is going to touch the 5K price level, a price target that we talked about several times before. The long-term price target for Ethereum is still at 10K. 

Having said that, speculators also believe that Ethereum is also due a healthy correction, and it is more likely that it may take place when the price touches the 5K price. 

From the institutional side, we still see strong evidence of money inflow, and there are no signs of demand weakening at all. For them, Ethereum is still massively undervalued, and they do not want to be left behind. Most of them missed the massive rally in Bitcoin and have only been able to join the digital currency near 40K to 50K. 

Dogecoin and The DogeFather 

Dogecoin took a serious beating over the weekend as the DogeFather, Elon Musk, took the wind out of Dogecoin’s rally. The word “hustle,” which he used as a joke, made speculators dump the coin who were previously expecting more optimistic language from him. Dogecoin fell below the 0.50 cent over the weekend, but it quickly recovered some of its deep losses. It is still widely believed that the fourth-biggest coin by market cap still has the ability to touch the one dollar mark as there is massive support among retail traders who are betting their savings on this.