S&P 500 futures are moving higher in premarket trading as traders look ready to buy tech stocks after yesterday’s sell-off.
Facebook managed to get back online after the major outage, and its shares are up by more than 1% ahead of the market open. Other leading tech stocks like Amazon, Apple, Alphabet and Tesla are also moving higher.
Speculative traders are interested in buying the dip as S&P 500 is down by more than 5% from its recent highs, and such pullbacks did not occur often after the acute phase of the coronavirus crisis.
Today, traders will have a chance to take a look at the final reading of Services PMI report which is projected to show that Services PMI declined from 55.1 in August to 54.4 in September. Meanwhile, ISM Non-Manufacturing PMI is projected to decrease from 61.7 in August to 60 in September.
WTI Oil and Brent Oil Keep Moving Higher As OPEC+ Remains Commited To The Original Plan
Yesterday, OPEC+ stated that it would increase its oil production by 400,000 barrels per day (bpd) in November, in line with the original plan. Oil consumers hoped that OPEC+ would boost production by 800,000 bpd due to global energy shortage, but OPEC+ decided that it was too early to rapidly increase production due to lower demand in winter and risks posed by the spread of the Delta variant of coronavirus.
The decision served as a material bullish catalyst for Brent oil which managed to get above the psychologically important $80 level and is currently trying to settle above the resistance at $82. In case this attempt is successful, Brent oil will head towards the next resistance at the $84 level which will be bullish for oil-related stocks. Meanwhile, WTI oil has good chances to get to the test of the $80 level.
Gold Remains Stuck In The $1750 – $1775 Range
Yesterday, gold made an attempt to gain upside momentum amid global market sell-off. However, gold quickly lost momentum despite its safe-haven status and remained stuck in the $1750 – $1775 range.
This is a bearish development for gold mining stocks which are trying to move away from yearly lows. If gold fails to settle above the resistance at $1775 and declines below the support at $1750, gold mining stocks will find themselves under more pressure.