Stocks Recover From The Blow Dealt By Powell’s Comments

S&P 500 futures are gaining ground in premarket trading as traders look ready to buy stocks after yesterday’s sell-off which was triggered by Powell’s comments.

The Fed Chair stated that the term “transitory” should be “retired” when speaking about inflation. He also added that the Fed was ready to cut its asset purchase program faster than previously expected.

These comments have sent U.S. dollar and short-term Treasury yields higher. Meanwhile, stocks and other riskier assets found themselves under pressure.

Today, stocks are set to open higher, but Treasury yields are also moving higher, which indicates that traders remain worried about inflation. Markets have been volatile in recent trading sessions, and it remains to be seen whether they will be ready to stabilize by the end of this week.

ADP Employment Change Report Meets Expectations
U.S. has just released ADP Employment Change report which indicated that private businesses hired 534,000 workers in November compared with analyst consensus of 525,000. This report did not have a material impact on S&P 500 futures as traders remained focused on recent Powell’s commentary and news on Omicron.

Today, traders will also focus on the final reading of Manufacturing PMI report for November which is expected to show that Manufacturing PMI increased from 58.4 in October to 59.1 in November.

WTI Oil Rebounds While Traders Wait For Clues From OPEC+
WTI oil found support near the $65 level and made attempt to settle above the $69 level as speculative traders rushed to buy oil futures after the huge sell-off.

OPEC will meet today to discuss the current situation in the oil markets and the potential impact of the new variant of coronavirus. Tomorrow, the remaining OPEC+ countries will join discussions.

At this point, it is not clear whether OPEC+ is ready to provide additional support to markets. If OPEC+ keeps the current schedule and continues to increase production by 400,000 barrels per day (bpd) each month, oil markets may find themselves under more pressure.

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