S&P 500 futures are gaining some ground in premarket trading as bank stocks gained upside momentum after Federal Reserve Board stated that it would eliminate temporary restrictions on banks’ dividends and buybacks after June 30, 2021.
Meanwhile, Treasury yields continue to rebound after the recent pullback and are moving closer to recent highs. Big tech shares remain sensitive to developments in the U.S. government bond markets, and stocks like Tesla and Apple are under some pressure in premarket trading.
U.S. dollar remains strong against a broad basket of currencies, and the U.S. Dollar Index is trying to get to the test of the 93 level. If Treasury yields continue to rise, the U.S. dollar may gain more upside momentum, which will be bearish for commodities and may be also bearish for the stock market.
Suez Canal Remains Blocked
WTI oil is currently trying to get back above the $60 level as Suez Canal remains blocked by the huge container ship Ever Given. At this point, it is not clear whether the canal will be unblocked before the end of the month, and some experts say that the whole operation may take several weeks.
This is bullish for oil as Suez Canal is an important route for oil traders. This catalyst is strong enough to offset worries about the third wave of the virus in Europe, which have put pressure on oil in the second half of this month. If WTI oil manages to settle above the $60 level and moves higher, oil-related equities will get additional support.
Personal Income Declined By 7.1% In February
The U.S. has just provided Personal Income and Personal Spending reports for February. Personal Income declined by 7.1% month-over-month compared to analyst consensus which called for a decline of 7.3%. In January, Personal Income increased by 10.1% due to stimulus payments.
Personal Spending declined by 1% compared to analyst estimates which called for a decline of 0.7%.
Today, traders will also have a chance to take a look at the final reading of Consumer Confidence report for March which is projected to indicate that Consumer Confidence increased from 76.8 in February to 83.6 in March.