As oil prices pull back, U.S. stocks will likely respond immediately.
Futures for the three major U.S. stock indexes all surged:
Dow Jones futures +1.02%
S&P 500 futures +1.07%
Nasdaq 100 futures +1.43%
Meanwhile, Brent crude and WTI fell by about 2.7% over the past 24 hours. The yield on U.S. 30-year Treasuries dropped 5 bps to 5.308%, and gold and silver rebounded as well.
Last night, the market was still worried that higher oil prices would push inflation up and that the Fed would keep raising rates. Today, when oil prices dip, risk assets immediately let out a breath.
Now, oil prices have become one of the market’s most sensitive variables.
If oil prices keep falling, the Fed’s inflation pressure could ease a bit. But if they surge back up, the market may have to trade rate-hike expectations all over again.
Tonight, keep an eye on oil prices and U.S. Treasuries. $XAUT
Futures for the three major U.S. stock indexes all surged:
Dow Jones futures +1.02%
S&P 500 futures +1.07%
Nasdaq 100 futures +1.43%
Meanwhile, Brent crude and WTI fell by about 2.7% over the past 24 hours. The yield on U.S. 30-year Treasuries dropped 5 bps to 5.308%, and gold and silver rebounded as well.
Last night, the market was still worried that higher oil prices would push inflation up and that the Fed would keep raising rates. Today, when oil prices dip, risk assets immediately let out a breath.
Now, oil prices have become one of the market’s most sensitive variables.
If oil prices keep falling, the Fed’s inflation pressure could ease a bit. But if they surge back up, the market may have to trade rate-hike expectations all over again.
Tonight, keep an eye on oil prices and U.S. Treasuries. $XAUT
