S&P 500 futures are gaining some ground in premarket trading as the market looks ready to continue its upside move.
The disappointing Non Farm Payrolls report, which indicated that the U.S. economy added 266,000 jobs in April compared to analyst consensus of 978,000, served as the main bullish catalyst for the market on Friday.
The longer it takes for the job market to recover, the longer the Fed will be forced to provide support to the economy and markets which is bullish for stocks.
Stock traders remain optimistic, while bond traders have managed to calm down after the initial shock. Currently, the yield of 10-year Treasuries is close to the 1.60% level, but yields show no signs of upside momentum which could have hurt tech stocks.
Oil Moves Higher After Cyberattack On Colonial Pipeline
WTI oil managed to get back above the $65 level and is moving higher as Colonial Pipeline remains shut after a cyberattack from a group named “DarkSide”. At this point, it is not clear when the pipeline will be operational again, and oil is moving higher on fears of shortages. The U.S. government has already declared a state of emergency to deal with the crisis.
Oil has found itself under pressure in recent trading sessions as the situation with coronavirus in India continued to move in the wrong direction, raising fears about potential damage to oil demand.
However, traders’ attention quickly shifted to domestic problems after the attack on the pipeline, and the market will likely stay focused on Colonial Pipeline’s problems in the upcoming trading sessions.
Precious Metals Gain Ground As Dollar Continues To Move Lower
Gold and silver started the week on a strong note as the U.S. dollar remained under pressure against a broad basket of currencies. Silver is currently testing the resistance at $27.75, while gold is trying to get to the test of the $1850 level.
The U.S. Dollar Index is moving towards the psychologically important 90 level. If the U.S. Dollar Index gets below this level, it will gain additional downside momentum which will be bullish for precious metals and shares of gold and silver miners.