U.S. Stocks Mixed As Traders Wait For First Debate Between Trump And BidenS&P 500 futures are swinging between gains and losses in premarket trading as traders wait for additional catalysts.
U.S. Presidential Debate In Focus
Today, traders will have a chance to evaluate the first debate between U.S. President Donald Trump and Democratic candidate Joe Biden.
The debate will take place after the market close but traders may start to position themselves ahead of the event.
It remains to be seen whether markets will immediately react to the performance during the debate as investors could prefer to take a look at the polls to evaluate the most recent polling dynamics.
Fossil fuel – related stocks may experience the biggest impact from the first round of presidential debates. A strong performance by Donald Trump may provide some much-needed support to fossil fuel stocks, while Biden’s lead in the polls after the first debate will put additional pressure on these stocks as Democrats push for a shift to green energy away from fossil fuels.
S&P 500 futures are mixed ahead of the market open which is not surprising after two strong days in a row.
Democrats Unveil A New $2.2 Trillion Coronavirus Aid Package Proposal
Talks between Republicans and Democrats are set to continue as Democrats offered a new coronavirus aid package bill worth $2.2 trillion.
Previously, Republicans indicated that they were ready to sign a bill worth $1.3 trillion, so negotiations are set to be challenging.
At this point, the market showed little reaction to the new bill. Most likely, traders want to see additional positive news on this front before they believe that Republicans and Democrats will be able to reach consensus on the new coronavirus aid package. If this happens, stocks will gain more ground.
Weaker Dollar Provides Support To Precious Metals
Gold and silver continued their rebound as the U.S. Dollar Index declined below the nearest support level at 94.20.
The U.S. government bond yields are also falling, providing more support to precious metals which pay no interest.
September was a challenging month for most precious metal mining stocks, especially in the silver space. If the American currency gains more downside momentum in the upcoming trading sessions, gold and silver miners will have a chance for a significant rebound.
For a look at all of today’s economic events, check out our economic calendar.