U.S. Stocks Set To Open Higher As Trump’s Health ImprovesS&P 500 futures are gaining ground in premarket trading amid reports that Donald Trump could get out of hospital on Monday.
The Market Remains Focused On President’s Health
S&P 500 futures are gaining ground in premarket trading amid reports that U.S. President Donald Trump may be discharged from hospital on Monday.
On Friday, S&P 500 was down by about 1% as traders exited stocks and boosted their purchases of safe haven assets after Donald Trump announced that he caught COVID-19.
While the market is currently optimistic about the health of the U.S. President, any serious moves will happen only after traders will have detailed reports about his recovery.
For now, the market has to deal with rumors so trading action is muted. If Donald Trump gets out of the hospital, stocks will likely get an additional boost.
Oil Recovers After Several Challenging Trading Sessions
WTI is currently trying to settle above $38.50 after rebounding from recent lows near $36.70 as traders shrugged off coronavirus-related fears and focused on the oil workers’ strike in Norway.
According to current estimates, oil production of about 330,000 barrels per day (bpd) could be affected by the strike. This strike came at a good time for the oil market as oil prices were under significant pressure due to fears of a second wave of lockdowns in Europe and elsewhere.
Energy-related stocks have been declining since August, and traders may use the current rebound in oil prices as an excuse to buy beaten shares. At this point, many oil-related stocks, including oil majors like Exxon Mobil or BP, are gaining ground in premarket trading.
All Eyes On Services PMI Data
Today, the U.S. will release Services PMI report for September which is expected to show that Services PMI declined from 55 to 54.6.
Other countries have already provided their PMI reports. In Euro Area, Services PMI declined from 50.5 to 48 but remained above the analyst consensus of 47.6.
In the UK, Services PMI decreased from 58.8 to 56.1 compared to analyst consensus of 55.1.
The recent Services PMI reports indicated that analysts may have been too pessimistic, and businesses managed to find ways to limit the damage dealt by the coronavirus pandemic.
If the U.S. Services PMI report confirms this trend and comes better than expectations, stocks will get an additional positive catalyst.
For a look at all of today’s economic events, check out our economic calendar.