US futures point higher as risk optimism continues to reverberate

News
  • S&P 500 futures +0.3%
  • Nasdaq futures +0.5%
  • Dow futures +0.3%

It’s all looking good for stocks but again, just be wary that we’re navigating through thin liquidity conditions. It is hard to trust moves during the festive season to New Year’s period so keep that in mind.

I’d wait on any follow through next week to really reaffirm the sentiment we’re seeing here. And even then, there is that sense that equities may look a bit stretched especially against the backdrop of slowing global growth and central bank rate hikes. That said, a lot on the latter has already been priced in so there is that.

Looking at the S&P 500 in the bigger picture, you can hardly notice or feel that pandemic dip from last year:

Elsewhere, oil is up by another 1.7% to $76.90 as risk trades in general are faring well. In FX, the aussie is seeing light gains with AUD/USD up 0.2% to 0.7250 but there is little change elsewhere.

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