U.S. Stocks Set To Open Higher As Rally ContinuesS&P 500 futures are up in premarket trading as traders continue to chase stocks on optimism about recovery.
Stocks Continue To Rally As Optimism Prevails
In addition, countries around the world reopen their economies, providing hopes for a swift economic recovery. In a landmark move, New Zealand has just decided to lift all restrictions as the country declared itself free of coronavirus.
Interestingly, the market completely ignores the steady increase in coronavirus cases around the world and shrugs off fears of the second wave of the virus. According to data from Johns Hopkins University, the total confirmed coronavirus cases have just suprassed the 7 million mark, while the U.S. is close to the 2 million cases level.
OPEC+ Extended Current Production Cuts By One Month
OPEC+ countries have met during the weekend and managed to agree to production cuts of 9.6 million barrels per day until the end of July.
Expectations of the production cut extension have supported prices in the previous week, and WTI oil managed to get to the $40 level.
Currently, oil is under some pressure as traders digest the results of the meeting and take some profits after the spectacular rally.
The extension of current production cuts is a significant supportive catalyst for the oil market since huge production cuts are maintained at a time when demand for oil increases as the world economy continues to reopen.
However, it remains to be seen whether this move will be sufficient enough to help oil settle above the $40 level.
Gold Stays Near $1700
Despite the widespread optimism in the global markets, gold continues to trade near the key $1700 level. Friday’s sell-off was not continued, and gold received buyer support on Monday.
This means that traders and investors are still uncertain about the future of the economy despite the huge market rally of the past few months.
Gold serves as a hedge against potential market downside and helps investors balance their portfolios when the stocks are once again close to all-time highs.
For a look at all of today’s economic events, check out our economic calendar.