S&P 500 futures are gaining ground in premarket trading as Treasury yields decline after the recent rally.
The yield of 10-year Treasuries tried to settle above 1.56% but lost momentum and declined towards 1.52%. Lower yields should provide support to tech stocks which had a rough trading session on Tuesday. Shares of leading tech companies like Apple, Tesla or Facebook are already moving higher in premarket trading.
Traders will also monitor the developments in Congresss as lawmakers have once again failed to raise the debt ceiling. While negotiations will be challenging, the market does not believe in the possibility of U.S. default, and it remains to be seen whether this topic will have a significant impact on markets in the upcoming trading sessions.
Today, traders will also take a look at Pending Home Sales report for August which is projected to show that Pending Home Sales grew by 1.4% month-over-month.
WTI Oil Gets Back To The $75 Level After Pullback
WTI oil has recently made an attempt to settle below the $74 level but failed to develop sufficient downside momentum and rebounded towards the $75 level. Yesterday’s API Crude Oil Stock Change report indicated that crude inventories increased by 4.13 million barrels compared to analyst consensus which called for a decline of 2.33 million barrels.
While the report served as an additional catalyst for a pullback. The main reason for yesterday’s move was profit-taking near yearly highs. Today, WTI oil should have a good chance to gain upside momentum.
U.S. Dollar Tests New Highs
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has recently managed to get above the resistance at 93.75 and is testing the next resistance level at 93.90.
While Treasury yields have moved lower today, dollar’s upside momentum remains strong which is bearish for gold and silver.