Friday's Market Minute: Fireworks In The Market

It’s been a short but memorable holiday trading week, with markets gapping up after Sunday’s open on reports of positive developments in the U.S./China Trade War and continuing to drift up during the week. Three of the four major equity index futures notched new all-time highs, including a close above the 3,000 level for S&P futures. Small-caps are once again the laggard of the group, with Russell 2000 futures actually losing about 1% since July 1 as of this morning’s early trading.

There are other signs that perhaps not everyone is preparing for more exuberance in the market. The VIX is up almost 5% in the premarket today and gold futures are still near five-year highs, indicating some traders still haven’t embraced the risk-on mindset. Additionally, this morning’s Jobs Report showed a gain of 224,000 month-over-month; a number that trounced estimates of 165,000 but also seems to have prompted a selloff in equities as unemployment ticked up to 3.7% and average hourly earnings missed expectations.

Many traders likely will be watching the move in treasuries today and wondering whether the data helps or hurts the case for a rate cut from the Fed.

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