S&P 500 futures are gaining some ground in premarket trading, and traders look ready to buy stocks at all-time high levels.
On Friday, Fed Chair Jerome Powell reiterated his dovish comments at the Jackson Hole Symposium and provided significant support to the stock market. Treasury yields pulled back from recent highs, and the U.S. dollar declined against a broad basket of currencies.
On Monday, the positive momentum remains intact as traders bet that Fed will not rush to cut its asset purchase program.
Today, traders will have a chance to take a look at Pending Home Sales report which is projected to show that Pending Home Sales grew by 0.4% month-over-month in July. It remains to be seen whether this report will have a material impact on the market as traders may stay focused on dovish Fed.
WTI Oil Is Flat Despite Hurricane Ida
WTI oil made an attempt to settle above $69.50 but lost momentum and pulled back while most of U.S. Gulf of Mexico oil production remained shut down due to Hurricane Ida.
Gasoline prices are projected to increase, but it is not clear whether Ida will push WTI oil above the $70 level as refineries are shut down as well. In this light, the spread between Brent oil and WTI oil may widen.
Gold Gets Back Above The $1800 Level
Gold managed to settle back above the $1800 level thanks to Powell’s dovish comments which pushed the U.S. dollar lower. Today, gold will likely make an attempt to get to the test of the next resistance level at $1830.
Gold mining stocks, which have recently managed to get away from multi-week lows, will be in focus today. In case gold manages to get to the test of the $1830 level, Friday’s rally will continue.