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Vladimir Zernov
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U.S. Stock Market

Stocks Move Closer To Recent Highs

S&P 500 futures are gaining ground in premarket trading as traders look ready to buy stocks after Friday’s pullback.

Today, the U.S. will release the final reading of Manufacturing PMI report for April which is projected to show that Manufacturing PMI increased from 59.1 in March to 60.6 in April.

PMI reports from around the world indicated that the manufacturing segment remained strong. Euro Area Manufacturing PMI increased from 62.5 in March to 62.9 in April while Australia’s Manufacturing PMI grew from 56.8 to 59.7. In China, Manufacturing PMI increased from 50.6 to 51.9.

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Silver Tests Key Resistance At $26.30

Silver gained strong upside momentum at the beginning of the week and is testing the resistance at $26.30. This resistance level has been tested many times in recent trading sessions and proved its strength.

A move above this level will signal that silver is ready to develop additional upside momentum after a period of consolidation which will be bullish for shares of silver miners.

Meanwhile, gold is also moving higher, although it will need to get above the psychologically important $1800 level to continue its upside move.

Shares of gold and silver miners have been under pressure in recent trading sessions, but the recent developments in precious metals markets provide hope for a rebound.

Treasury Yields Lack Direction At The Start Of The Week

Treasury yields failed to gain additional upside momentum and remain close to last week’s levels. The yield of 10-year Treasuries has settled above the 20 EMA at 1.61% but did not manage to settle above the 1.65% level which is bullish for tech stocks that often show sensitivity to higher yields.

It remains to be seen whether Fed Chair Jerome Powell has managed to calm bond traders as yields remain not far from highs that were reached back in March. At this point, higher yields are one of the biggest potential risks for the market that may trigger a material pullback from current levels. At the same time, it should be noted that economic data stays strong, and the market remains in a bullish mode.

For a look at all of today’s economic events, check out our economic calendar.

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