U.S. Stocks Set To Open Higher As S&P 500 Is Ready To Settle Above 3400

FDA Approves Emergency Use Of Blood Plasma From Recovered Patients To Treat COVID-19

S&P 500 futures are gaining ground during the premarket trading session as traders cheer the decision of U.S. Food and Drug Administration to approve the use of recovered patients’ blood plasma to treat COVID-19.

Although the market’s attention is mostly focused on potential vaccine candidates, any good news on the coronavirus treatment front also help stocks.

At this point, S&P 500 looks ready to settle above 3400 and continue its upside move, and positive news on the healthcare front serve as an additional catalyst for the market.

Waiting For Clues From The Fed

The unprecedented monetary stimulus is the main driver behind the current market rally. The market’s optimism will be tested this week as Fed Chair Jerome Powell will provide his view on the current situation during the Jackson Hole Economic Policy Symposium on Thursday.

FOMC Minutes from the most recent Fed meeting did not contain any indication that the Fed was ready to adopt an inflation target and try to push inflation above 2% to facilitate economic recovery.

However, investors and traders will be waiting for signs that the Fed is ready to use additional measures to support the economy. Fed’s support is especially important for the market at a time when U.S. Republicans and Democrats failed to reach consensus on the new coronavirus aid package.

Oil Gains Ground As More Than Half Of U.S. Gulf Of Mexico Oil Production Is Shut Down Due To Storms

WTI oil is gaining ground as oil producers had to shut down more than half of U.S. Gulf of Mexico oil production due to two storms in the region. These storms are Hurricane Marco and Tropical Storm Laura.

The shutdown of more than 1 million barrels per day (bpd) of U.S. oil production may put more pressure on crude oil inventories which will be bullish for oil.

Major oil stocks like Exxon Mobil or BP are already gaining ground in premarket trading and are set to be active today.

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