OP Wire – Thursday Market Outlook
U.S. stock futures are pointing higher this morning, with the S&P 500 inching closer to those record highs from back in February.
As of 3:10 AM ET, Dow futures were up 84 points (+0.2%), S&P 500 futures had gained 14 points (+0.2%), and Nasdaq 100 futures climbed 74 points (+0.3%).
The major indexes took a breather Wednesday, ending mixed after a two-day rally, as markets reacted to the ongoing ceasefire between Israel and Iran and parsed through Fed Chair Powell’s cautious tone in front of Congress.
Eyes now shift to Friday’s release of the Fed’s preferred inflation gauge — the Core PCE Price Index — a report that could be pivotal for interest rate outlooks. Powell’s recent remarks reaffirmed a “wait-and-see” stance, as the Fed monitors the impact of Trump’s sweeping tariffs.
ING noted in a client note: “Markets appear to trust the ceasefire for now, and the dollar is testing lows again. From here, U.S. data will likely take center stage, especially with Powell dropping a few dovish hints during his testimony.”
👀 Trump Eyes Powell Replacement
President Trump once again blasted Powell’s handling of monetary policy — criticizing slow rate decisions and even questioning Powell’s fitness for the job. According to the WSJ, Trump has narrowed down his list of Fed replacements and may make a decision as early as this summer.
📉 BYD Slips on EV Slowdown
Shares of Chinese EV giant BYD dropped after reports surfaced that the company has slowed production and scrapped some expansion plans. The company canceled night shifts and slashed output by a third at four factories, as bloated inventories force a reset.
Even though BYD outsold Tesla in 2024 with over 4.2 million vehicles delivered, softening margins and fierce pricing wars are clearly pressuring the playbook.
🛢 Shell Denies BP Buyout Rumor
Shell officially shut down speculation that it’s eyeing a buyout of rival BP. The oil giant said it hasn’t made any approach and is now blocked from making an offer for the next six months under U.K. rules.
📊 Oil Creeps Higher
Crude oil prices are slowly building on Wednesday’s rally, following a sharp drawdown in U.S. crude inventories.
At last check, Brent crude was up 0.2% at $66.54/barrel and WTI climbed to $65.00/barrel. U.S. stockpiles fell by 5.8 million barrels last week, and gasoline demand hit its highest levels since late 2021.
💥 QQQ Breaks New Ground
The $QQQ tech index continues to impress — closing Wednesday at a new all-time high of 541.16 (+0.26%) and running even higher after-hours thanks to Micron’s stellar earnings.
Key support levels to watch: 525, 513, and the psychological level at 500.
Resistance remains minimal until 545+.
Bitcoin is holding just above $107.5K, and gold is steady near $3,350/oz.
🔥 Micron, Uber, and Starbucks Get Love from Wall Street
- Micron (MU): KeyBanc raised its price target to $160 after blowout earnings and bullish DRAM/HBM demand.
- Uber (UBER): Cantor Fitzgerald bumped its PT to $106, citing strong rideshare demand and resilience against robotaxi disruption.
- Starbucks (SBUX): Barclays lifted its PT to $108, highlighting strong fundamental improvements in the restaurant group.
🤖 AI Tension Between OpenAI and Microsoft?
According to WSJ, OpenAI and Microsoft are negotiating terms around future AGI (artificial general intelligence) access. The current contract reportedly allows OpenAI to restrict Microsoft’s access when AGI is reached — something Microsoft is looking to revise.
OpenAI CEO Sam Altman says their partnership is still “wonderfully good,” despite some tension points. Stay tuned — this could affect future AI market dynamics in a big way.
💸 Overnight Gap System Still Crushing
As Tracks posted in chat:
“Last year: 90 trades, +2,384% profit
This year I’m pacing for 80 trades and +2,650%.”
If you’re not in the Green Goose (GG) overnight system yet — email steve@optionsplayers.com and get plugged in.
🚀 Final Note
Momentum remains on the bulls’ side. As long as $QQQ holds above 513, dips are opportunities. Just stay nimble with so much economic data today.
See you in chat!
Let’s stack more wins together.
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