Traders Wait For The Release Of U.S. Inflation Data
S&P 500 futures are swinging between gains and losses in premarket trading as traders continue to wait for the U.S. inflation data which will be released on Thursday.
This release will serve as a major catalyst for markets, so traders are not ready to make big moves before they see whether Inflation Rate increased by 4.7% in May, as expected by analysts, or moved above the 5% level.
Today, traders will take a look at Wholesale Inventories data for April. Analysts expect that Wholesale Inventories increased by 0.8% month-over-month after growing by 1.1% in March. It remains to be seen whether this report will have any impact on the market as traders stay focused on the upcoming inflation reports.
WTI Oil Breaks Above $70
WTI oil managed to get above the $70 level and continues its upside move as oil traders stay focused on the rebound of the world economy. In addition, oil has recently received several positive catalysts.
U.S. Secretary of State Antony Blinken stated that he anticipated that hundreds of U.S. sanctions on Iran would remain intact even if Iran and United States reach consensus on Iran nuclear deal.
Meanwhile, Libya has recently cut its oil production by more than 200,000 barrels per day (bpd) due to technical problems and maintenance work.
These catalysts were sufficient enough to push oil to new highs as the market remains bullish and traders are ready to buy oil on positive news. Not surprisingly, oil-related stocks look ready for a strong start of today’s trading session.
Treasury Yields Continue To Move Lower
The yield of 10-year Treasuries is currently trying to settle below the psychologically important 1.50% level. The continuation of the current downside trend has put some pressure on the U.S. dollar, and the U.S. Dollar Index is testing the support at the 90 level.
Lower yields and weaker dollar have provided some support to precious metals, although gold continues to trade below the $1900 level. In case Treasury yields move lower, gold mining stocks should have a chance to gain some upside momentum after the recent pullback.
For a look at all of today’s economic events, check out our economic calendar.