Stock futures traded higher Monday morning, recovering some losses after last week’s selloff.
Contracts on the S&P 500 gained about 1% ahead of the opening bell, after closing out last week with a 3.3% weekly loss for its worst since October. Contracts on the Dow and Nasdaq also traded higher.
Other asset classes performed even more strongly Monday morning, fueled by a crowd of retail investors piling en masse into names popularized on the Reddit forum r/wallstreetbets. Silver became one of these traders’ most recent picks, with silver futures (SI=F) spiking more than 11% Monday morning to more than $30 per ounce, hitting the highest level since 2013. The iShares Silver Trust (SLV) added more than 10%, and shares of major silver producers including Fortuna Silver Mines (FSM) and Pan American Silver (PAAS) also spiked.
Elsewhere, Dogecoin (DOGE-USD) added nearly 40% Monday morning after Reddit and other social media users touted the meme-based cryptocurrency and Tesla CEO Elon Musk made an apparent nod to the token on Twitter last week.
The heavily shorted stocks that legions of online traders initially targeted last week traded mixed. GameStop (GME) shares pointed to a lower open, taking a pause after last week’s 400% rally, while AMC (AMC) and BlackBerry (BB) traded higher. Online brokerages including Robinhood, Webull Financial and E-Trade Financial temporarily blocked buying of many of these volatile shares, drawing the ire of users, criticism from lawmakers and a class action lawsuit against Robinhood over the restrictions, which were later eased.
As of Robinhood’s latest update, the number of companies on the app with trading restrictions had been reduced to eight, down from the 50 stocks with restrictions late last week.
“Regulatory actions, broker risk limits, or unexpected losses could all dampen the activity and market impact of retail traders, as Thursday’s temporary reversal made clear,” Goldman Sachs strategists led by David Kostin said in a note. “But otherwise, an abundance of U.S. household cash should continue to fuel the trading boom.”
Meanwhile, traders are also gearing up for another packed week of earnings reports from heavily weighted S&P 500 companies, including Alphabet (GOOGL, GOOG) and Amazon (AMZN) after market close on Tuesday.
So far this earnings season, corporate profits have been coming in better than feared. Of the 37% of S&P 500 companies that have already reported fourth-quarter results, 82% beat consensus expectations for earnings per share, according to FactSet data. It this proportion holds, it would mark the second-highest percentage of S&P 500 companies beating earnings estimates in more than a decade.
7:15 a.m. ET Monday: Stock futures point higher
Here’s where markets were trading on Monday ahead of the opening bell:
S&P 500 futures (ES=F): 3,743.00, up 37.75 points or 1.02%
Dow futures (YM=F): 30,116.00, up 237 points or 0.79%
Nasdaq futures (NQ=F): 13,042.75, up 131.5 points or 1.02%
Crude (CL=F): +$0.58 (+1.11%) to $52.78 a barrel
Gold (GC=F): +$1,870.30 (+1.08%) to $1,870.30 per ounce
10-year Treasury (^TNX): -1.7 bps to yield 1.077%
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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