Pullback By Crude Oil, Treasury Yields May Lead To Initial Rebound On Wall Street
(RTTNews) - After trending lower over the past few sessions, stocks may move back to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
The futures recently advanced amid a downturn by the price of crude oil, which had moved notably higher over the past three sessions.
U.S. crude oil futures have slipped into negative territory after surging as much as 1.3 percent to their highest levels in almost three weeks.
Stocks may also benefit from a notable pullback by treasury yields, with yields falling sharply after the Treasury Department announced upscaled buyback operations for longer-term debt.
The Treasury said it is increasing the size of liquidity support buyback operations for longer-dated nominal coupon securities by at least double, effective September 9th.
Buying interest may be somewhat subdued, however, as traders look ahead to the release of the minutes of the Federal Reserve's latest monetary policy meeting.
Stocks moved mostly lower during trading on Tuesday, extending the pullback seen over the two previous sessions. The Nasdaq showed a significant move to the downside on the day, reflecting weakness among tech stocks.
The major averages all ended the day in negative territory. The Nasdaq slumped 355.20 points or 1.3 percent to 26,289.71, the S&P 500 slid 53.30 points or 0.7 percent to 7,691.76 and the Dow fell 116.38 points or 0.2 percent to 53,343.40.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index plunged by 3.2 percent, while China's Shanghai Composite Index tumbled by 2.4 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is up by 0.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both down by 0.1 percent.
In commodities trading, crude oil futures are falling $0.46 to $84.48 a barrel after climbing $0.44 to $84.94 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,452.30, up $31.70 compared to the previous session's close of $4,420.60. On Tuesday, gold slumped $53.10.
On the currency front, the U.S. dollar is trading at 158.57 yen compared to the 159.62 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1625 compared to yesterday's $1.1574.
