Stocks Gain Ground As Traders Believe That Powell Will Stay Dovish

Stocks Set To Open Higher

S&P 500 futures are moving higher in premarket trading as traders look ready to buy stocks after yesterday’s strong trading session.

Today, traders will take a look at the latest housing market data. Analysts expect that Existing Home Sales decreased by 1% month-over-month in May after declining by 2.7% in April.

It remains to be seen whether this report will have a material impact on market dynamics as many traders will be waiting for Fed Chair Jerome Powell testimony.

Recent hawkish comments from Fed’s Bullard led to a significant sell-off on Friday, but Powell will likely try to calm markets and reiterate that Fed is ready to provide support as long as necessary.

Oil Pulls Back As Russia Wants To Boost Production

WTI oil failed to settle above the $74 level and declined below the $73 level after reports indicated that Russia wanted to boost oil production.

According to reports, OPEC+ will discuss an increase of oil production at its next meeting which is scheduled to take place on July 1.

Demand for oil is rising, and many OPEC+ members would like to increase production. As usual, Saudi Arabia’s position is not clear. Most likely, negotiations will focus on the amount of additional oil production. If OPEC+ acts cautiously and the increase is modest, oil may get more support.

Precious Metals Decline As Dollar Rebounds

Gold and silver found some support after the recent sell-off but failed to develop upside momentum. Currently, the U.S. dollar is gaining ground against a broad basket of currencies while Treasury yields are moving higher, which is bearish for dollar-denominated precious metals which pay no interest.

Gold mining stocks and silver mining stocks gained ground on Monday, but it looks that the start of today’s trading session may be challenging for this market segment. It remains to be seen whether traders will be ready to buy these stocks in case precious metals fail to move away from current levels and gain upside momentum.

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