Stocks continue to trade near record highs
S&P 500 futures fluctuate between gains and losses in the premarket and it looks like traders are waiting for additional catalysts to lift the market.
Stocks tried to gain momentum yesterday, but lost momentum and closed in negative territory. Today traders will have the opportunity to familiarize themselves with the latest FOMC protocols, which could have a noticeable impact on the markets.
The yield on 10-year Treasuries started to rise, which may put some pressure on technology stocks at the start of the trading session. If the FOMC minutes are not dovish enough, Treasury yields could rise, which will be negative for stocks.
WTI oil tries to return above the $ 60 level
A recent API report on changes in crude oil inventories showed that crude oil inventories were down 2.6 million barrels. The report provided support for WTI oil, which is currently trying to return above the psychologically important level of $ 60.
Virus fears have put some pressure on oil in recent trading sessions, but strong US economic recovery has served as an upbeat catalyst. It remains to be seen if positive economic data will offset the negative impact of the third wave of the virus in Europe, which is weighing on oil demand.
Traders will also have the opportunity to view the latest weekly EIA oil condition report, which could have a significant impact on today’s trading session. Analysts expect the report to show that oil inventories fell 1.4 million barrels. If the report exceeds expectations, oil has a good chance to move higher.
Precious metals return
Gold and silver were under pressure in today’s trading session with no visible catalysts for such a move. The US dollar was flat against a broad basket of currencies, while the rise in Treasury yields was marginal.
Gold has recently attempted to return below the 20 EMA at $ 1,730. A move below this level will be a big disappointment for the bulls, as it will indicate that the attempt to gain additional upside momentum has failed. In this case, the shares of gold mining companies will decline.
For all of today’s economic events, check out our economic calendar.