Stocks Gain Ground As Traders Shrug Off Virus Worries

Stocks Look Ready To Continue Monday’s Rally

S&P 500 futures are up by more than 1% in premarket trading as Omicron-related worries decrease

Early reports suggest that Omicron may be more transmissible than Delta. However, Omicron may be more likely to cause mild disease. The markets will have to wait for a few weeks before researchers come up with their first scientific conclusions on Omicron, but traders are willing to buy stocks after the recent pullback as it looks that worst fears have not materialized.

Leading tech stocks like Apple and Tesla are up by more than 2% in premarket trading, and it looks that yesterday’s strong rally in tech stocks will continue today.

WTI Oil Made An Attempt To Settle Above $72

WTI oil continues to move higher as traders bet that the spread of Omicron will not put too much pressure on the recovery of demand for oil.

In addition, it looks that the recent Saudi Arabia’s decision to increase prices for Asian customers served as a strong upside catalyst for oil markets.

In this environment, oil-related stocks will move higher at the start of today’s trading session and will have a good chance to gain additional upside momentum.

U.S. Dollar Gets Closer To Yearly Highs As Treasury Yields Increase

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 96.50 and is moving towards the next resistance level at 96.70. The yearly high for the U.S. Dollar Index is located at 96.94, so the American currency is already close to this level.

The yield of 2-year Treasuries has recently managed to get above yearly highs and is currently trying to settle above 0.68% as bond traders remain worried about inflation.

A combination of higher yields and stronger dollar has already put some pressure on gold, which is trying to settle below the $1775 level. A move below this level will open the way to the test of the important support level at $1750 which will be bearish for gold mining stocks.

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