Trader Sentiment in Gold Back in Extreme Buy Territory | Investing.com

- U.S. equity index futures are mostly higher following a sharp tech-led selloff Friday as investors rotated out of semiconductors and momentum trades after stronger-than-expected labour data pushed yields sharply higher; S&P 500 (w/w -2.6% to 7,383), Nasdaq 100 (w/w -4.4% to 28,957), Dow 30 (w/w -0.6% to 50,866) and the small-cap Russell 2000 (w/w -2.3% to 2,833) all closed with losses; Treasury yields jumped across the curve (and so too in real terms), with the nominal 10-year back above 4.5% and the 30-year breaching 5% again following the latest updates, and market pricing (CME’s FedWatch) sees (via majority) a rate hike out of the December FOMC meeting

- Shares of Nvidia (-6.2%) sank in what was a nasty session for chipmakers with sizable losses for Broadcom (-7.9%), AMD (-10.9%), Intel (-11.3%), Arm Holdings (NASDAQ:ARM) (-12.8%), Qualcomm (NASDAQ:QCOM) (-11%), Micron (-13.3%), and memory names; negative factors included upcoming SpaceX IPO and equity raise from Big Tech for AI translating into liquidity needs, yields rising sharply hurting growth valuations, rate hike expectations, and the reverse carry trade; Marvell Technology (-16.7%; +3.5% AH) with a partial lift in extended trading as it’ll join the S&P 500 on June 22

- Tesla shares (-6.6%) moved lower alongside the broader risk-off move as investors rotated aggressively into defensive sectors, and failed to take advantage of an upgrade out of JPMorgan to neutral and a sizable price target hike

- Meta (-5.5%) in clear retreat following an FT report its planning to follow Alphabet (-1%) in raising tens of billions of dollars to fund its AI push

- Consumer staples and healthcare were clear beneficiaries of the rotation out of technology with Procter & Gamble (+4.1%), Coca-Cola (+3.5%), and Colgate-Palmolive (+4.1%) up notably

- Red close for Lululemon Athletica (-8.6%) after cutting annual earnings and revenue guidance and warning on demand headwinds

- Quantum computing names were under pressure following weak IPO reception to Quantinuum (-6.8%), dragging peers lower including Rigetti Computing (-14.4%) and D-Wave Quantum (-13.7%)

- Meme stock movers: Beyond Meat (-9.8%), Kohl’s (-3.1%), GoPro (-10%), Krispy Kreme (+7.3%), Opendoor (-10.7%), AMC (-8.7%), BlackBerry (-9%), Nokia (-13.5%), GameStop (-2.1%)

- Crypto stocks tracked cryptocurrencies lower after Bitcoin briefly fell below $60K: Coinbase (-7.2%), MicroStrategy (-6.9%), Mara Holdings (-11.2%), Gemini Space Station (-9.4%), Bullish (-9.1%), Circle Internet Group (-11.3%)

- Gold prices still above $4.3K after Friday’s brutal session sparked by stronger U.S. labor data that sent yields higher, raised rate hike likelihoods to a majority for this year out of the Fed, and boosted the greenback, while the losses for silver were far worse late last week and currently hovering below $68, with its underperformance against gold taking the gold/silver ratio to as high as 64 this morning and at levels unseen since April

- Oil prices (WTI) gap higher and briefly breach $93 following the latest exchange of strikes between Iran and Israel; weekly rig count data out of Baker Hughes shows number of US oil rigs rising to 431 from 429; Goldman Sachs on the decline in oil demand larger than anticipated and posing risks to its price forecast; OPEC+ agrees to its fourth consecutive oil output increase, 188K bpd for the month of July though strait closure limits supply reach

- Bitcoin enjoying a climb this morning getting to $63K though yet to undo this month’s double-digit percentage losses, with Ether touching $1.7K but where it too has been struggling alongside the general crypto sphere and more so if long-term holders continue to sell, with the Ethereum/Bitcoin ratio briefly touching the 0.025s; Saylor teases more BTC purchases with traders awaiting updates regarding its stash today and so too the latest figures on the flows front

- US Dollar Index still in the upper 99 handle after Friday’s jump that was supported by stronger labor data, higher yields, and rising rate hike odds; USD/JPY still above 160 this morning after breaching and sticking above the infamous level last Friday

- Federal Reserve’s Hammack that holding rates steady remains reasonable for now but persistent inflation trends could eventually require action, and Barr that weaker banking rules and lower capital requirements risk increasing long-term financial instability despite short-term growth benefits

- Bank of England’s Bailey that tolerating temporarily above-target inflation is appropriate amid economic softness and uncertainty, but tolerance would fade if second-round inflation effects emerge; Dhingra that the energy crisis remains the key variable for future rate decisions with cuts possible if oil retreats but tightening still a risk if energy shocks persist

- Indices: Long bias w/w climbs across the board moving further within heavy buy territory in the S&P 500 (69% from 65% last Monday), reaches it in the Russell 2000 (66% from 61%), and moves away from the middle in the Nasdaq 100 (majority buy 62% from 51%) as the pullback saw fresh shorts close out and longs initiate; elsewhere reaches heavy buy in the Nikkei 225 (67% from 54%) and DAX (67% from 62%) while pushes further into extreme buy territory in the ASX 200 (91% from 89%) and Hang Seng (89% from 88%)

- Commodities: Back in extreme buy territory in gold (84% from 77% a week ago) and moves further within it in silver (88% from 86%); sentiment in WTI stays heavy long (67% from 65%) and reaches it in natural gas (71% from 63%)

- FX: Just shy of heavy buy in EUR/USD (64% from 57% at the start of last week), while just shy of heavy sell in USD/JPY (64% from 56%)

- Indices: Net short and rising in the S&P 500 (64% from 62%) and Nasdaq 100 (57% from 54%) while reduced their net sell sentiment in the Dow 30 (60% from 69%)

- Commodities: Big increase in net long bias in gold (reaching 87% from 81%) while only a notch higher in silver (77% from 76%), and fall out of heavy buy in WTI (62% from 65%)

- FX: Net long and rising in EUR (56% from 54%) while remaining net sell in GBP (66% from 67%) and JPY (68% from 67%; i.e., net long USD/JPY 68%)

- U.S. May Non-Farm Payrolls rises 172K, comfortably above the 85K forecast with upside revisions, unemployment rate holds at 4.3%, average hourly 0.3% m/m in line with expectations and y/y falls from 3.6% to 3.4%

- EZ Q1 GDP suffers surprise contraction down 0.2% q/q

- Canadian unemployment rate falls notably to 6.6% in May from 6.9% prior, net change 87.8K well above forecasts

- Japanese Q1 GDP 0.5% besting 0.3% estimate

- In Europe, German factory orders (10am Dubai time) and Sentix’s investor confidence (12:30pm)

- U.S. CPI on Wednesday, PPI on Thursday, and UoM’s preliminary consumer sentiment and inflation expectations on Friday

o Earnings from Oracle on Wednesday and Adobe on Thursday

- European Central Bank’s policy decision on Thursday (rate hike expected)