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Vladimir Zernov
U.S. Stock Market

Donald Trump Calls For A Small Stimulus Bill

Yesterday, the market found itself under significant pressure after U.S. President Donald Trump stated that coronavirus aid package negotiations with Democrats would stop.

Today, S&P 500 futures are gaining ground in premarket trading after Trump proposed a limited stimulus bill which would include $1,200 stimulus checks, $135 billion in funds for paycheck protection program and $25 billion for airline payroll support.


The market has just proved that it is very sensitive to stimulus news as traders remain worried about the state of the economy while stocks are trading at high levels despite the pandemic.

Most likely, various developments on the stimulus front will add to market volatility in the upcoming trading sessions.


FOMC Minutes In Focus

Today, traders will have a chance to take a look at FOMC Minutes from the last meeting. Previously, the Fed signaled that it would keep rates at the bottom until the end of 2023 but traders would like to know what the Fed thinks about the current state of the economy and the potential trajectory of rate hikes when the economy is ready for them.

The release of FOMC Minutes may serve as a material catalyst for the U.S. dollar, which, in turn, may impact gold and silver prices and mining stocks.

Gold and silver have recently failed to develop significant upside momentum but weaker dollar could serve as a catalyst for a new rally. At the same time, weaker dollar will be bullish for the whole stock market.

Oil Tries To Settle Below The $40 Level

Oil remains very volatile near the key $40 level. Yesterday, API Crude Oil Stock Change report indicated that inventories increased by 0.95 million barrels.

This report put pressure on oil prices, although the data will have to be confirmed by the upcoming EIA Weekly Petroleum Status Report before traders will make their final conclusions about the latest developments on the inventory front.

Donald Trump’s decision to stop coronavirus aid package negotiations with Democrats served as an additional bearish catalyst for oil prices while his recent call for a limited stimulus bill helped oil recover some of the losses. At this point, it looks like energy-related stocks are set for a volatile trading session.

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

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