Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Another record coming?
1. Another record coming?
U.S. stock futures are holding their ground after both the S&P 500 and Nasdaq reached new heights on Tuesday.
The S&P 500 rose to 2,187.68 at one point, beating the all-time high it hit a day earlier. But it then pulled back toward end the day to just a notch below Friday's closing record.
Meanwhile, the Nasdaq set a closing high on Tuesday, ending the day at 5,225.48. It's still got a bit more climbing to do to surpass its highest ever level, which was set in July 2015.
The Dow Jones Industrial Average ended the day flat, but it's worth noting that the index is less than 100 points away from the all-time record it set last month.
2. USD down on Wednesday
2. USD down on Wednesday
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, moved lower on Wednesday, as traders reevaluated the odds that the Federal Reserve (Fed) could return to policy tightening this year.
An unexpected third consecutive decline in nonfarm labor productivity on Tuesday dampened buying sentiment in the dollar and decreased odds for rate hike.
While waiting for trade to resume on Wednesday, Fed fund futures assigned only a 40% probability that rates will move higher by December.
3. It’s precious metals time
3. It’s precious metals time
Palladium led gains in precious metals by the most since 2010 on Wednesday with gold trading higher for a second straight day on the dollar weakness.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
4. Oil prices fall 1%
4. Oil prices fall 1%
Oil prices fell more than 1% on Wednesday on bearish bets for U.S. weekly crude inventory data out later in the session and concerns of oversupply continued to weigh on black gold.
Saudi Arabia was reported to have pumped a record 10.67 million barrels a day in July in order to meet summer demand as investors looked ahead to a monthly report from the Organization of Petroleum Exporting Counties due later in the session to gauge global supply and demand levels.
Rising stockpiles stateside continued to keep nerves on edge with the U.S. Energy Information Administration set to release its weekly report on oil supplies at 14:30GMT, Wednesday amid expectations for a drop of 1.025 million barrels.
After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by a surprising 2.1 million barrels in the week ended August 5. It also showed a decline of 4.0 million barrels in gasoline stocks.
U.S. crude oil futures slumped 1.24% to $42.24 at 9:56AM GMT, while Brent oil traded down 0.96% to $44.55.
