S&P 500; US Indexes Fundamental Daily Forecast – Traders Will Be Watching Oil Market

U.S. equity market are trading slightly better early Monday with the major indexes following Asian equities higher. It’s a small start, but it is possible that investors are trying to continue the recovery they posted late last week after Wednesday’s steep sell-off.

In other news, there appears to be no reaction to yet another missile test by North Korea over the week-end. According to reports, the rogue nation said a missile test on Sunday involved an intermediate-range ballistic missile. North Korean state media said leader Kim Jong Un had “approved the deployment” of the missile, according to Reuters.

There are no major U.S. reports on Monday, but several Fed speakers are scheduled to make remarks. Investors are not expecting any blockbuster news from the FOMC members that would derail the chances of a Fed rate hike in June.

Traders will also be watching President Trump as he continues his trip to the Middle East. Over the week-end, Trump visited Saudi Arabia and in his first foreign trip as President, he reportedly made an arms deal worth $350 billion on Saturday.

Since the appointment of a special prosecutor to investigate the Trump campaign’s alleged involvement with Russia in the rigging of the presidential election, U.S. stock markets have stabilized. I’m sure there are going to continue to be news stories from unnamed sources, but I don’t think investors are going to pay too much attention to them.

Next week, former FBI Director James Comey is scheduled to testify before the Senate Intelligence Committee, after Memorial Day. I think investors are likely to wait to hear what he has to say rather than react to speculative headlines.

Stocks are also likely to be sensitive to the oil markets this week because of the major OPEC meeting on May 25. At this time, the market is being supported by expectations of an extension of the cartel’s production cut program. Stronger oil stocks could be supportive for the Dow and the S&P 500 Index.

Oil prices could surge later in the week, taking stocks with them if OPEC agrees to make deeper production cuts.