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Wealth Daily 03 February 2022

WEALTH DAILY 2022-02-03
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While Asia was celebrating the Lunar New Year holidays, traders on Wall Street were celebrating a sharp four-day US stock market rally, fueled by rebounding tech stocks. The Invesco QQQ ETF (QQQ US, +0.81%) is up 8% since last Thur. The “Triple Qs” track the Nasdaq-100 Index, and are often used as a benchmark for US tech shares. 

Leading the charge on Wed were Alphabet (GOOGL US, +7.52%) and Advanced Micro Devices (AMD US, +5.12%) which both soared on strong results. On the other hand, PayPal (PYPL US, -24.59%) was an extraordinary loser, after providing weak guidance. 

On Wed, the Dow Jones Industrial Average gained 224.09 pts or 0.63% higher to close at 35,629.33. The S&P 500 index rose 0.94%. The tech-heavy Nasdaq Composite advanced 0.5%. The small cap Russell 2000 dropped 1.03%. 

A fifth straight day of gains does not look to be in the cards. After the close, the company formerly known as Facebook, Meta Platforms (FB US, +1.25%), and Spotify (SPOT US, -5.75%) reported results that displeased analysts. In extended-hours trade Meta has shed 23% and Spotify is down 11%. 

In early trade this morning (Thur), futures tied to the Nasdaq 100 dropped 2.3%, and S&P 500 futures slid 1%. Dow Jones Industrial Average futures slid 35 points, or 0.1%. 

On Wed, the 10-year Treasury note yield slipped 1.24 basis points (bps) to 1.7751%. 

The most actively traded US gold futures (Apr) contracts settled up $8.80, or 0.5%, at US$1,810.30/oz. March silver, which is the most actively traded silver futures, rose 11.2 cents, or 0.5%, to end at US$22.707/oz. 

The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 0.47% to 95.936. The biggest weight in the DXY is the euro, which rose 0.3% to US$1.1307, after the release of data showing Eurozone inflation was higher than expected. The European Central Bank (ECB) is meeting today, and policymakers will be under pressure to act curb inflation. 

WTI crude futures held near a fresh seven-year high as OPEC+ agreed to another only modest hike in output. The front-month Brent and WTI futures closed up 31 cents at US$89.47/bbl and 6 cents at US$88.26/bbl respectively. 

European equity markets finished mixed on Wed. The UK FTSE gained 0.63%, France's CAC 40 rose 0.22%, while the German DAX retreated 0.04%.