Stocks Mixed After Yesterday’s Tech Sell-Off
Stocks Lack Direction In Premarket Trading
S&P 500 futures are swinging between gains and losses in premarket trading as traders evaluate their next moves after yesterday’s sell-off in the tech space. While S&P 500 was down by just 0.32% on Monday, the tech-heavy Nasdaq lost 1.26%.
Today’s reports from European countries were encouraging. Euro Area Manufacturing PMI increased from 58.3 in October to 58.6 in November compared to analyst consensus of 57.3. Euro Area Services PMI grew from 54.6 to 56.6 while analysts expected that it would decline to 53.5. The growth in the services segment is surprising given the current situation with coronavirus in Europe.
It should be noted that strong PMI reports failed to provide support to European indices today, and it remains to be seen whether U.S. traders will react to PMI numbers or focus on tech stocks, which remain under some pressure in premarket trading.
WTI Oil Tries To Rebound Despite The Release Of Crude From U.S. Strategic Petroleum Reserve
WTI oil gained upside momentum and is trying to settle above $76.50 after U.S. President Joe Biden announced release of crude from the Strategic Petroleum Reserve.
The press release from the White House stated that China, India, Japan, South Korea and UK have also decided to participate in the deal. U.S. will release 50 million barrels of oil in order to put pressure on oil prices.
Interestingly, traders rushed to buy oil futures after the announcement. The amount of oil that will be released by U.S. is roughly half of the world’s daily consumption, and it remains to be seen whether it will have a significant impact on the market.
Gold Moves Below The $1800 Level As Yields Rise
The yield of 10-year Treasuries is currently trying to settle above 1.65% while the yield of 2-year Treasuries has reached yearly highs. Fed Chair Jerome Powell will serve his second term, and the market expects that he will become more active in a battle against inflation.
These expectations have pushed the U.S. dollar to yearly highs. U.S. government bonds have found themselves under pressure which pushed their yields higher.
For a look at all of today’s economic events, check out our economic calendar.