In the latest market activities, the broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) has shown a notable rise of 1.1%, while the actively traded Invesco QQQ Trust ($QQQ) increased by 1.3% during Wednesday's premarket session. This positive trend is a continuation of the rebound seen in the equity markets the previous day, providing optimism among investors and market analysts alike. The US stock futures also depicted an upward trajectory with the S&P 500 Index futures climbing by 1.2%.
Meanwhile, Dow Jones Industrial Average futures saw an increase of 0.8%, and Nasdaq futures gained 1.4% before the commencement of regular trading hours, signaling strong investor confidence ahead. One of the primary catalysts for the market's uplift can be traced back to the mortgage sector, where applications witnessed a significant increase of 6.9% for the week ending August 2.
This surge is largely attributed to a drastic drop in mortgage rates, reaching levels not seen since May 2023. As a result, refinancing applications skyrocketed by 16%, complemented by a 1% uptick in new home applications, according to data released by the Mortgage Bankers Association. Additionally, all eyes are on the weekly EIA domestic oil inventories report, set to be divulged at 10:30 am ET, alongside the Consumer Credit report for June, which will be available at 3 pm ET, as these data points are expected to provide further insights into economic conditions and consumer behavior. Within the cryptocurrency arena, premarket trading saw Bitcoin climbing by 0.9%, while the ProShares Bitcoin Strategy ETF ($BITO) was up by 0.3%.
This reflects the growing interest in digital currencies, which have remained volatile but increasingly popular among investors seeking diversification in their portfolios. In the financial sector, the Financial Select Sector SPDR Fund (XLF) advanced by 1.1%. Meanwhile, Direxion Daily Financial Bull 3X Shares ($FAS.US) surged by 3.5%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares ($FAZ), saw a decrease of 3.2%.
This divergence highlights the contrasting sentiments within the financial markets. Upstart Holdings ($UPST) experienced a substantial rally in its shares, surging past 26% during Wednesday’s premarket activities, following the company’s announcement of a lower-than-expected adjusted loss for Q2.
This development has piqued the interest of market participants. In the sphere of technology, the Technology Select Sector SPDR Fund (XLK) rose by 1.8%, and the iShares US Technology ETF ($IYW) marked an increase of 2.3%. However, the iShares Expanded Tech Sector ETF ($IGM.US) remained inactive during the same timeframe.
Notably, in the semiconductor space, while the SPDR S&P Semiconductor ETF ($XSD) exhibited inactivity, the iShares Semiconductor ETF ($SOXX) rose by 0.9%. The performance within technology stocks reflects ongoing demand and growth in this pivotal sector. Shopify ($SHOP) experienced a remarkable uptick of over 18% in recent premarket trading, propelled by the company’s positive Q2 earnings and revenue announcement, underscoring its strong market presence. In the consumer sector, the Consumer Staples Select Sector SPDR Fund ($XLP) advanced by 0.5%, while the Vanguard Consumer Staples Fund ($VDC) showed a 1.5% gain.
The iShares US Consumer Staples ETF ($IYK) did not trade actively, whereas the Consumer Discretionary Select Sector SPDR Fund ($XLY) rose by 0.9%. The VanEck Retail ETF ($RTH) and the SPDR S&P Retail ETF ($XRT) were also inactive during this period. On the other hand, Airbnb ($ABNB) faced a significant downturn, trading down 14% in the premarket session after the company reported lower-than-expected Q2 earnings, trailing behind analysts' forecasts.
This fall exemplifies the challenges faced in the current economic landscape. In the industrial sector, the Industrial Select Sector SPDR Fund ($XLI) managed a modest advance of 1%, while both the Vanguard Industrials Index Fund ($VIS) and the iShares US Industrials ETF (IYJ) showed no activity during this trading session. Global Payments ($GPN) shares rose by 7% before the opening bell, motivated by the company reporting increased Q2 adjusted earnings and revenue, showcasing its robust performance in the payments industry. In the health care domain, the Health Care Select Sector SPDR Fund ($XLV) advanced by 0.2%, while the Vanguard Health Care Index Fund ($VHT) noted a 0.9% increase.
However, the iShares US Healthcare ETF ($IYH) remained inactive, alongside the iShares Biotechnology ETF ($IBB). The sector faces uncertainty as Novo Nordisk ($NOV) saw its stock decrease by nearly 5% in premarket trading post-reporting lower-than-anticipated Q2 results. In the energy arena, the iShares US Energy ETF ($IYE) did not show trading activity, whereas the Energy Select Sector SPDR Fund ($XLE) jumped by 1.4%.
On the corporate front, Independence Contract Drilling ($ICD) held steady before the Wednesday opening after reporting wider Q2 adjusted losses along with lower revenue. In commodities, front-month US West Texas Intermediate crude oil experienced a gain of 1.7%, hitting $74.46 per barrel on the New York Mercantile Exchange, while natural gas noted an increase of 2.2%, amounting to $2.05 per million British Thermal Units.
The United States Oil Fund (USO) rose by 2.2%, with the United States Natural Gas Fund (UNG) advancing by 1.7% as well. Gold futures for December reported a modest increase of 0.2%, settling at $2,436.80 an ounce on the Comex, while silver futures inched up by 0.01%, reaching $27.22 an ounce. SPDR Gold Shares ($GLD) advanced by 0.3%, and iShares Silver Trust ($SLV) mirrored this with a 0.3% rise.
This movement in precious metals indicates ongoing investor interest as a hedge against volatility in the markets..