Stocks Move Higher As Traders Shrug Off Inflation WorriesMeanwhile, WTI oil is testing the $66 level.
Stocks Set To Open Higher After Yesterday’s Sell-Off
S&P 500 futures are moving higher in premarket trading as traders look ready to buy stocks after yesterday’s pullback.
Yesterday’s sell-off in the tech space was caused by comments of Treasury Secretary Janet Yellen which stated that interest rates may have to move higher to ensure that the economy did not overheat. These comments put immediate pressure on the tech-heavy Nasdaq which finished the day down by almost 2%.
Yellen later added that she was not predicting or recommending the move, and it looks that this was sufficient enough to calm traders. Interestingly, the bond market did not show a strong reaction. Currently, the yield of 10-year Treasuries is trying to settle above the 20 EMA at 1.61% which served as resistance for several trading sessions.
ADP Employment Change Report Misses Analyst Consensus
The U.S. has just released ADP Employment Change report for April. The report indicated that private businesses hired 742,000 workers compared to analyst consensus of 800,000.
Later, traders will take a look at the final reading of Services PMI report for April. Analysts expect that Services PMI increased from 60.4 in March to 63.1 in April as the economy continue to rebound at a robust pace.
WTI Oil Tests The $66 Level As Rally Continues
WTI oil is currently trying to settle above the $66 level as traders continue to bet on the strong recovery of oil demand. Yesterday, API Crude Oil Stock Change report indicated that crude inventories declined by 7.7 million barrels compared to analyst consensus which called for a decline of 2.19 million barrels.
Today, the market’s focus will shift to EIA Weekly Petroleum Status Report which usually has a bigger impact on the market compared to API Crude Oil Stock Change report. If EIA numbers confirm that crude inventories declined at a robust pace, the oil market may get additional support.
For a look at all of today’s economic events, check out our economic calendar.