U.S. Stocks Set To Open Higher As Trump Revives Hopes For A Stimulus Package
Donald Trump is calling for a small bill
The market was under significant pressure yesterday after US President Donald Trump announced that negotiations on the coronavirus aid package with Democrats would be suspended.
Today, S&P 500 futures are gaining ground in premarket trading after Trump proposed a limited stimulus bill that includes $ 1,200 for stimulus checks, $ 135 billion for the paycheck protection program, and $ 25 billion Includes dollars for airline payroll support.
The market has just proven that it is very sensitive to economic news as traders continue to be concerned about the economic situation as stocks trade at high levels despite the pandemic.
Most likely, various developments on the stimulus front will add to market volatility in the upcoming trading sessions.
FOMC minutes in focus
Today traders have the opportunity to take a look at the FOMC minutes from the last session. Previously, the Fed had signaled that it would keep rates at their lowest levels through the end of 2023, but traders would like to know what the Fed thinks about the current economic situation and the possible course of rate hikes when the economy is ready for them.
The release of the FOMC protocol can serve as a major catalyst for the US dollar, which in turn can impact gold and silver prices as well as mining stocks.
Gold and silver haven't seen significant upward momentum lately, but a weaker dollar could act as a catalyst for a new rally. At the same time, the weaker dollar will be bullish for the entire stock market.
Oil is trying to get below the $ 40 level
Oil remains very volatile near the key $ 40 level. Yesterday the API Crude Oil Stock Change report found that inventories were up 0.95 million barrels.
This report put oil prices under pressure, although the data will need to be confirmed by the upcoming EIA weekly report on oil status before traders can draw their final conclusions on the latest developments in inventory levels.
Donald Trump's decision to end negotiations on the coronavirus bailout with Democrats served as an additional bearish catalyst for oil prices, while his recent call for a limited stimulus package helped oil make up for some of the losses. At this point, it looks like energy-related stocks are set for a volatile trading session.
In our economic calendar you will find all economic events of today.
This article was originally published on FX Empire
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