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• US stock futures hold steady as interest rate pause fuels optimism: US stock futures traded near breakeven after a strong rally in Thursday’s regular session. Investors anticipate that interest rates may have reached their peak following the Federal Reserve’s tightening pause in June.
• Virgin Galactic surges on the announcement of first commercial space tourism flight: In extended trading, Virgin Galactic soared 42% after revealing plans for its inaugural commercial space tourism flight later this month. The news generated excitement and boosted investor confidence.
• Adobe beats estimates and issues positive guidance: Adobe shares rose over 3% after exceeding expectations on both top and bottom lines. The company’s upbeat guidance further contributed to its positive performance.
• Major averages see broad market participation and weekly gains: The Dow, S&P 500, and Nasdaq Composite all registered substantial gains during Thursday’s trading session. The technology-led rally transformed into a broader market advance, with healthcare, technology, and industrial sectors leading the way.
• The dollar index remains steady after recent declines: The dollar index hovered around 102.1 on Friday, set to decline by 1.4% for the week. The Federal Reserve’s decision to pause its tightening campaign, coupled with other central banks raising interest rates, has influenced the dollar’s performance.
• US interest rates potentially nearing peak as the economy slows: Investors believe that US interest rates may be reaching their peak as economic momentum wanes. The Federal Reserve’s decision to skip a rate hike this week, while hinting at potential future increases, supports this notion.
• European Central Bank tightens policy while Bank of England prepares for rate hike: The European Central Bank implemented another 25 basis point rate hike on Thursday and indicated further tightening. The Bank of England is also expected to raise rates at its June policy meeting, following surprise rate increases from the Reserve Bank of Australia and the Bank of Canada.
• Dollar shows weakness against euro, sterling, and antipodean currencies: The dollar is on track for significant weekly declines against the euro, sterling, and currencies of Australia and New Zealand. However, it held its ground against the yen as the Bank of Japan maintains a dovish stance.

The E-mini S&P 500 is trading around $4477, showing a slight increase of about 0.1% during the early European trading session. The market’s behavior appears to be influenced by the rollover date for today’s session. However, the calculations for the session are mixed, indicating a potential for a balanced market. The median-term perspective is supported by lower volatility and a combination of a weaker dollar.

Yesterday’s volume profile revealed a multiple distribution structure, suggesting that buyers were active around the upper area of the first lower volume zone today. On the other hand, sellers may target the next lower volume area to find absorption for core long positions. The current profile indicates some interest in higher prices, but it’s worth noting that the swing highs could act as a selling level, potentially leading to a pullback scenario.

Furthermore, the market is trading above the developing value area and may aim for the lower VWAP close level, attracting buyers during the New York trading session. The prevailing bullish momentum has the potential to drive the market higher.

1 Month Ago

Considering the current contango, prices for the front-month contract might increase. However, investors must carefully assess the direction in which prices are adjusting for today’s rollover date, as it could trigger a volatile market environment.

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