S&P 500 futures are little changed in premarket trading as traders evaluate their next moves near all-time high levels.
Yesterday, Fed officials Raphael Bostic and Thomas Barkin stated that inflation had already achieved the Fed’s 2% mark. While the job market has not fully recovered, it looks that Fed is ready to discuss the reduction of its asset purchase program.
Not surprisingly, Treasury yields continued to move higher after these remarks. Currently, the yield of 10-year Treasuries is trying to settle above 1.33%. Just a few days ago, 10-year Treasuries yielded less than 1.20%.
It should be noted that rising yields had no serious impact on stocks in recent trading sessions. However, traders should continue to monitor the developments in U.S. government bond markets as the continuation of the current move may put more pressure on high-flying tech stocks.
WTI Oil Rebounds After Yesterday’s Sell-Off
WTI oil received strong support near the $65 level and made an attempt to settle above the $68 level.
Today, oil traders will have a chance to take a look at API Crude Oil Stock Change report which is expected to show that crude inventories declined by roughly 1 million barrels.
If API Crude Oil Stock Change report is better than expected, oil and oil-related stocks may get more support. However, traders may remain cautious as recent developments in China pose additional risks for the rebound of oil demand.
Gold Stabilizes After Two-Day Sell-Off
Gold is currently trading near $1730 as it tries to develop upside momentum after the major sell-off.
Gold mining stocks have moved to multi-week lows on Monday, and it remains to be seen whether they will be able to attract sufficient investor interest during today’s trading session.
U.S. dollar is currently moving higher against a broad basket of currencies, which is bearish for gold and other precious metals. The nearest support level for gold is located at $1720. In case gold declines below this level, it will head towards the next support level at $1700 which will be bearish for gold mining stocks.