S&P 500 futures are gaining ground in premarket trading as traders rush to buy stocks after the recent pullback.
Today, traders will take a look at Consumer Inflation Expectations report which is projected to show that Consumer Inflation Expectations increased from 4.8% in July to 4.9% in August.
While the Fed pays close attention to Consumer Inflation Expectations, the market may ignore this report as many traders will prefer to wait for Inflation Rate and Core Inflation Rate reports which will be published tomorrow.
Inflation Rate is expected to decline from 5.4% in July to 5.3% in August. If the reports exceeds analyst expectations, stocks will likely move lower as higher inflation would likely force Fed to cut its asset purchase program in the fourth quarter of 2021.
WTI Oil Moves Above $70 Amid Supply Concerns
WTI oil managed to get above the $70 level and continues to move higher amid concerns about supply in the U.S.
Hurricane Ida did material damage to U.S. oil production, and production levels are not recovering as fast as previously expected.
The next significant resistance level for WTI oil is located at $72.50. In case WTI oil manages to get to the test of this level, oil-related stocks will get more support.
U.S. Dollar Gains Ground As Traders Stay Worried About Tapering
U.S. dollar is strong ahead of the release of U.S. inflation data for August as traders bet that Fed will announce the reduction of its asset purchase program on September 22.
U.S. dollar gained upside momentum in recent trading sessions despite recent dovish comments from Fed Chair Jerome Powell. This move put pressure on precious metals, and gold settled below the $1800 level.
In case gold manages to get to the test of the next support level which is located at $1775, gold mining stocks will find themselves under more pressure.