Stocks Move Higher As Bullish Momentum Remains Strong
Stocks Set To Start The Week On A Strong Note
S&P 500 futures are gaining ground in premarket trading as traders shrug off inflation risks. Trading has calmed down in U.S. government bond markets, and the yield of 10-year Treasuries has settled in the tight 1.61% – 1.63% range.
This is an interesting development as recent PMI reports indicated that the economy rebounded faster than expected. Strong economy, together with the massive stimulus provided by the government and the Fed, should push prices higher, but traders look ready to ignore these risks.
Lower yields are especially bullish for yield-sensitive tech stocks, and Nasdaq futures are up by more than 0.7% in premarket trading.
WTI Oil Rebounds Amid Reports About Problems In Nuclear Deal Negotiations
WTI oil managed to get back above the $64 level after recent reports indicated that nuclear deal negotiations were not moving as fast as expected.
WTI oil has recently found itself under pressure as traders were worried about additional barrels of Iranian oil which could return to the market if U.S. and Iran managed to reach consensus on the nuclear deal.
However, it looks that oil market mood remain bullish as oil easily managed to gain upside momentum on first signs of problems in nuclear deal negotiations. In this light, energy-related stocks should have a strong start of today’s trading session.
Cryptocurrencies Rebound As Traders Buy The Dip
China’s crackdown on Bitcoin miners served as the latest bearish catalyst for the crypto market. However, the general bullish mood in markets provides sufficient support to riskier assets, and cryptocurrencies are moving higher.
Trading will likely remain highly volatile in crypto markets this week, and big swings may have an impact on sentiment in other markets.
For a look at all of today’s economic events, check out our economic calendar.