Stocks Fluctuate Near All-Time Highs

Stocks Mixed As Traders Wait For Additional Catalysts

S&P 500 futures are swinging between gains and losses in premarket trading as traders wait for additional catalysts which could push S&P 500 to new highs. The psychologically important 4000 level is in sight, but stocks will likely need an additional boost to get to this level.

The U.S. has just released NY Empire State Manufacturing Index report for March which indicated that the index increased from 12.1 to 17.4 compared to analyst consensus of 14.5.

The better-than-expected report did not provide additional support for S&P 500 futures, and it looks like the market will need stronger catalysts to get to new highs.

Treasury Yields Stay Close To Multi-Month Highs

This week, traders will remain focused on the U.S. government bond market. On Wednesday, the Fed will announce its interest rate decision and provide commentary about the current situation in the economy, which may have a material impact on markets.

The Fed failed to stop the sell-off in the Treasury markets which is pushing yields higher, and traders wonder whether current levels are high enough for the Fed to intervene.

Currently, the yield of 10-year Treasuries is 1.62%, while the yield of 30-year Treasuries is 2.38%. If yields continue to move higher, stocks may find themselves under pressure.

Oil Tries To Settle Below The $65 Level

The recent Baker Hughes Rig Count report indicated that the number of U.S. rigs drilling for oil decreased by 1 to 309 but the report failed to provide additional support to the oil market.

It looks like traders are not focused on the potential increase of U.S. oil production. The latest EIA Weekly Petroleum Status Report indicated that U.S. domestic oil production increased from 10 million barrels per day (bpd) to 10.9 million bpd as oil companies restored production after problems caused by cold weather, but the market does not believe that domestic oil production will move higher than 11 million bpd in the near term.

At the same time, the oil market remains worried about the rebound of demand for oil as the coronavirus situation in Europe remains challenging. If virus worries persist, WTI oil will have a good chance to settle below the $65 level.

For a look at all of today’s economic events, check out our economic calendar.