Stocks Slip From Record Highs As Traders Prepare For Earnings SeasonMeanwhile, gold is testing the support level at $1800.
Traders Take Some Profits Ahead Of U.S. Inflation Reports
S&P 500 futures are moving lower in premarket trading as traders take some profits off the table near record highs.
Today, trading may be choppy ahead of the beginning of the earnings season and the upcoming release of U.S. inflation data.
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On Tuesday, traders will have a chance to take a look at inflation reports for June. Inflation Rate is projected to increase by 4.9% year-over-year while Core Inflation Rate is expected to grow by 4%.
In case inflation exceeds expectations, U.S. dollar may get additional support, but it remains to be seen whether stronger dollar will be bearish for stocks as the general market mood remains very bullish. Tomorrow, traders will also focus on reports from financial firms, including JPMorgan and Goldman Sachs.
WTI Oil Moves Lower Amid Concerns About Delta Coronavirus Variant
WTI oil declined below the $74 level and is currently trying to settle below $73.50 as traders are worried that the spread of the Delta coronavirus variant may hurt global demand for oil.
The market is also worried about the future of OPEC+ deal. OPEC+ members have recently failed to reach a consensus deal as UAE wanted to increase its quota, and it remains to be seen whether the deal will survive in its current form.
At this point, it looks that OPEC+ members should be able to reach consensus, but another price war may put significant pressure on oil prices. Most likely, worries about the future of OPEC+ deal will continue to put some pressure on the market until there is more clarity about future OPEC+ negotiations.
Gold Moves Back To The $1800 Level As U.S. Dollar Gains Ground At The Start Of The Week
Gold found itself under pressure at the beginning of the week as the U.S. dollar gained ground against a broad basket of currencies. The U.S. Dollar Index received strong support near 92.15 and made an attempt to settle above the resistance level at 92.40.
In case gold declines below the $1800 level, it will gain additional downside momentum and head towards the support at $1775 which will be bearish for gold mining stocks.
It should be noted that worries about the Delta variant of coronavirus have failed to push gold above the 50 EMA at $1815 in recent trading sessions, and gold may find itself under material pressure if the U.S. dollar stays strong.
For a look at all of today’s economic events, check out our economic calendar.