Stocks Retreat As Treasury Yields Move To New Highs
Stocks Set To Open Lower
S&P 500 futures are losing ground in premarket trading as tech stocks are under pressure due to rising Treasury yields. While S&P 500 futures are down by about 0.7%, the tech-heavy Nasdaq futures are losing about 1.5%.
Apple, Microsoft, Alphabet, Facebook, Tesla, Netflix and other leading tech stocks have found themselves under significant pressure in premarket trading. In case these stocks fail to get some support today and continue to move lower, they will drag the rest of the market down.
Today, traders will also have a chance to take a look at Consumer Confidence report which is projected to show that Consumer Confidence increased from 113.8 in August to 114.5 in September. Case-Shiller Home Price Index report is projected to indicate that home prices grew by 20% year-over-year in July.
WTI Oil Tries To Settle Above The $76 Level
WTI oil continues its upside move as traders rush to establish long positions amid supply concerns. Recent reports indicate that China has serious problems on the energy front which lead to factory shutdowns. This is bullish for all energy including oil, natural gas and coal.
Not surprisingly, WTI oil has already made an attempt to get to the test of the yearly highs near the $77 level. This attempt was not successful as some traders decided to take profits at these levels, but oil has good chances to test the yearly highs in the upcoming trading sessions.
Precious Metals Decline As Dollar Tests Yearly Highs
High Treasury yields provided additional support to the U.S. dollar which moved towards yearly highs that were reached back in August. In turn, strong dollar put pressure on precious metals.
Gold managed to get below the $1750 level and is moving towards the next support at $1720 level, which is bearish for gold mining stocks which may get to yearly lows today. Meanwhile, silver gained strong downside momentum and made an attempt to settle below the support level at $22.10.
For a look at all of today’s economic events, check out our economic calendar.
