Friday morning’s premarket activity showed stock index futures trading above fair value, hinting at early buying interest. However, the release of non-farm payroll numbers at 8:30 AM had the potential to change market direction. Thursday was dominated by Tesla, which saw a sharp decline, triggering a sell signal for the Magnificent 7 ETF. Despite the sell signal, premarket strength in Tesla and other Magnificent Seven stocks on Friday morning suggests traders should wait before exiting positions. Bitcoin mirrored Tesla’s behavior, dropping Thursday but rebounding Friday morning.
Weekly charts show broad market strength: the TSX hit new all-time highs, the NASDAQ 100 led with nearly a 1% gain—driven by semiconductors—and the Russell 2000 advanced 1.5%. Crude oil and gold moved higher, with bonds also gaining and yields declining, a supportive backdrop for equities. The VIX remains neutral, offering no clear signal. Several major indexes hit price targets, and among the Magnificent Nine, Microsoft, Nvidia, and Meta made new highs, while Apple and Alphabet approached new buy signals. Tesla remains weak, though Friday’s premarket buying indicates some bargain hunting.
Stephen Whiteside
Friday, June 6, 2025
