S&P 500 futures are losing ground in premarket trading as traders take some profits off the table ahead of Fed Interest Rate Decision which will be announced on Wednesday.
Today, global markets are under some pressure amid fears about the spread of the Delta variant of coronavirus and the major sell-off in China which was caused by a ban on for-profit school tutoring firms.
It should be noted that problems in China will have no fundamental impact on other markets, while it remains to be seen whether traders are seriously worried about the spread of coronavirus as the market has mostly ignored this topic in previous trading sessions.
Today, traders will also have a chance to take a look at New Home Sales report which is expected to show that New Home Sales increased by 3.5% month-over-month in June. Most likely, the report will have minimal impact on market dynamics as traders will focus on earnings reports from biggest U.S. companies and the upcoming Fed Interest Rate Decision.
WTI Oil Failed To Settle Below $71 And Returned To The $72 Level
WTI oil has recently made an attempt to settle below the $71 level on virus worries. Potential weakness of China’s crude oil imports caused by China’s crackdown on import quotas served as an additional bearish catalyst.
However, oil quickly managed to find buyers and returned to the $72 level which is bullish for oil-related stocks. This is a good sign for the stock market as it indicates that most traders are not worried about the spread of the virus.
Gold Found Strong Support Near The $1800 Level
Gold has recently made several attempts to settle below the support at $1800 but failed to develop sufficient downside momentum and continues to trade above this level.
This is bullish for gold mining stocks which have been under material pressure since the beginning of June. However, traders may remain cautious until they hear commentary from the Fed, so the gold market may stay choppy until Wednesday.