S&P 500 Trims Gains After Hitting New Record High
S&P 500 futures hit a fresh record high early today before trimming gains to trade slightly negative after the US open. The S&P 500 remained nearly 1% higher going into the weekend, with technology stocks helping to fuel those gains. Market sentiment got a boost from positive headlines around economic data, such as upbeat retail sales data and stock-specific news that Nvidia (NVDA) could soon sell restricted chips to China. Ethereum futures (/ETHN5) hit six-month highs as demand for the crypto asset rose. The dollar was on track to gain for the second week as investor confidence in the United States recovered.
Symbol: Equities | Daily Change |
/ESU5 | -0.10% |
/NQU5 | -0.14% |
/RTYU5 | -0.18% |
/YMU5 | -0.38% |
S&P 500 futures (/ESU5) were down about 0.10% shortly after the New York cash session opened. Utilities and consumer discretionary were the top gainers, while technology and communication stocks lagged. Netflix (NFLX) traded nearly 5% lower yesterday after reporting earnings after the bell. The company beat estimates but warned that operating margins would slow down in the second half of the year. Chevron (CVX) won a bid against Exxon Mobil (XOM) over offshore oil assets in Guyana.
Strategy: (42DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 6250 p Short 6275 p Short 6425 c Long 6450 c | 19% | +900 | -350 |
Short Strangle | Short 6275 p Short 6425 c | 47% | +8300 | x |
Short Put Vertical | Long 6250 p Short 6275 p | 59% | +382.50 | -867.50 |
Symbol: Bonds | Daily Change |
/ZTU5 | +0.07% |
/ZFU5 | +0.18% |
/ZNU5 | +0.24% |
/ZBU5 | +0.31% |
/UBU5 | +0.25% |
Bond yields fell after Federal Reserve Gov. Christoper Waller pointed toward a possible dissent during the Fed’s next policy meeting, citing concern about hiring in the private sector. 10-year T-note futures (/ZNU5) rose 0.24% today in early trading. The Fed will announce its next policy decision on July 30, and all eyes will now be on Waller’s vote.
Strategy (35DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 103.375 p Short 103.5 p Short 103.875 c Long 104 c | 26% | +156.25 | -93.75 |
Short Strangle | Short 103.5 p Short 103.875 c | 43% | +531.25 | x |
Short Put Vertical | Long 103.375 p Short 103.5 p | 86% | +93.75 | -156.25 |
Symbol: Metals | Daily Change |
/GCQ5 | +0.49% |
/SIU5 | +0.81% |
/HGU5 | +1.31% |
A pro-growth move resulting from lower bond yields and the prospect of rate cuts is driving copper prices (/HGU5) over 1% higher this morning. Copper is nearly unchanged on the week after a big surge from last week after the United States announced copper tariffs. Through most of this year traders have been front-loading copper shipments into the United States in anticipation of the tariffs. An environment where rates come down sooner could help boost economic activity and the demand for copper.
Strategy (39DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 5.45 p Short 5.46 p Short 5.78 c Long 5.79 c | 20% | +200 | -50 |
Short Strangle | Short 5.46 p Short 5.78 c | 58% | +9725 | x |
Short Put Vertical | Long 5.45 p Short 5.46 p | 57% | +100 | -150 |
Symbol: Energy | Daily Change |
/CLQ5 | +1.45% |
/HOQ5 | +4.31% |
/NGQ5 | +1.44% |
/RBQ5 | +0.29% |
Crude oil futures (/CLU5) rose 1.45% this morning after the European Union reached a consensus on a new sanctions package against Russia. The sanctions package is pointed towards Russia’s oil business, which has helped fill its war coffers. The sanctions also target fuels made from Russian oil. Meanwhile, lower rates in the United States are also supporting a growth-on tilt for the economic outlook.
Strategy (61DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 64 p Short 64.5 p
Long 69.5 c | 21% | +370 | -130 |
Short Strangle | Short 64.5 p Short 69 c | 51% | +4650 | x |
Short Put Vertical | Long 64 p Short 64.5 p | 56% | +210 | -290 |
Symbol: FX | Daily Change |
/6AU5 | +0.58% |
/6BU5 | +0.28% |
/6CU5 | +0.15% |
/6EU5 | +0.54% |
/6JU5 | +0.17% |
Australian dollar futures (/6AU5) led major currencies higher this morning, with prices up 0.59% an hour into the US trading session. Lower yields in the US dragged on the dollar, while a rate cut outlook that supports growth boosted the sentiment-sensitive aussie. Higher prices for iron ore, which is a major export for Australia, also boosted the currency. Traders digested data that showed China’s appetite for the energy product is strong.
Strategy (49DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 0.64 p Short 0.645 p Short 0.66 c Long 0.665 c | 33% | +310 | -190 |
Short Strangle | Short 0.645 p Short 0.66 c | 55% | +1120 | x |
Short Put Vertical | Long 0.64 p Short 0.645 p | 71% | +140 | -360 |
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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