S&P 500 futures are gaining ground in premarket trading as traders have shrugged off worries about weaker-than-expected data from China.
The rally is driven by leading tech stocks like Tesla, Alphabet, Microsoft as demand for this type of investment stays strong.
The U.S. dollar has recently moved away from yearly highs and continues to trend down, which serves as an additional bullish catalyst for stocks. Weaker dollar shows that demand for safe haven assets is declining.
The yield of 10-year Treasuries has returned to the 1.60% level, and it looks that bond traders remain worried about inflation. However, this move had no impact on the stock market mood.
Building Permits Declined By 7.7%
The U.S. has just released Building Permits and Housing Starts reports. The reports indicated that Building Permits declined by 7.7% month-over-month in September compared to analyst consensus which called for a decline of 1.8%. Housing Starts decreased by 1.6% while analysts expected that they would drop by 1.6%.
It remains to be seen whether weaker-than-expected housing market reports will have a material impact on the stock market today. S&P 500 is moving towards historic highs at a robust pace, and traders may stay focused on this target and ignore everything else.
Silver Price Rallied To $24
Silver gained strong upside momentum after it managed to get above the resistance level at $23.50 and moved towards the $24 level. Interestingly, gold‘s move was modest, although it managed to get back above the resistance at $1775. Gold/silver ratio managed to settle below the 50 EMA at 75.90 and moved towards the 74 level, which was the main driver behind silver’s move as traders rushed to bet that gold/silver ratio will continue to decline.
Today’s silver price action is good news for silver mining stocks which have already started to recover from recent lows. Gold mining stocks should also enjoy support during today’s trading session.