Stocks Move Higher As Traders Stays Optimistic Despite Recent Sell-Offs
Stocks Gain Ground At The Start Of The Week
S&P 500 futures are gaining ground in premarket trading as traders look ready to buy stocks after Friday’s sell-off.
Recent trading sessions have been volatile, as some traders sold equities on fears over the new variant of coronavirus while others were willing to buy stocks at discount.
It should be noted that Nasdaq futures are losing ground in premarket trading as the sell-off in the tech space continues. The market is not ready to tolerate sky-high valution levels in case companies do not show strong growth. Broader bullish bets on the high-growth market segment like ARK Innovation ETF have been under significant pressure in recent weeks.
The weakness in the tech space may have a material impact on S&P 500 as leading tech stocks have a significant weight in the index. In premarket trading, Apple stock is moving higher while Tesla stock is down by about 2%. Alphabet, Microsoft, Meta Platforms and Amazon are mostly flat.
WTI Oil Moves Higher As Saudi Arabia Raises Prices For Asian Customers
WTI oil continued its attempts to settle above $68.50 after reports indicated that Saudi Arabia increased prices for Asian customers by up to $0.80.
Recent reports from South Africa suggested that Omicron cases were not severe, and it looks that the panic over the new variant of coronavirus calms down. However, oil markets will likely remain sensitive to any news about Omicron and its potential impact on oil demand in the upcoming weeks.
Not surprisingly, the upside move in the oil markets provided support to oil-related stocks, which look ready to gain ground at the start of today’s trading session.
Gold Tries To Settle Above $1775
Gold managed to get back above the $1775 level and is trying to develop additional upside momentum despite higher Treasury yields and strong dollar.
It looks that the recent sell-off in crypto markets, which pushed Bitcoin below the $50,000 level, provided support to gold.
Meanwhile, gold mining stocks will likely find themselves under pressure at the start of today’s trading session as investors remain cautious towards this market segment.
For a look at all of today’s economic events, check out our economic calendar.