Monday's Market Minute: Watching Oil And Rates

Looks like a light week as far as economic data and earnings, but with geopolitical tensions in the Middle East pushing crude oil prices higher and the focus on interest rates here in the U.S. spiking, investors and traders will have plenty to stay dialed in on. Let’s take a minute to get ahead of what’s to come this week.

First, after rallying 5% last week, crude oil prices are higher after a drone attack on Saudi Arabia’s largest crude oil facility. The move up in crude coincides with rates, which have spiked and have begun to weigh on indices.

This week, keep an eye on the move up in the TYX to 2.35% and the TNX to 1.62%, most notable in how it impacts the tech-heavy Nasdaq. With the Fed quiet through next week, when we hear from the FOMC it could be a volatile week for rates as traders speculate as to what the Fed’s reaction to the recent runup will be. We also have some companies to keep an eye on reporting quarterly results; the focus will continue to be on retail, with Dicks Sporting Goods Inc DKS and Stich Fix Inc SFIX reporting. Also, keep an eye on DocuSign Inc DOCU and Oracle Corporation ORCL. The week’s light in terms of economic data but we do have CPI and PPI, and with all the focus on rates and inflation, they could move markets.

Last but not least, the U.S. Dollar is inching up some, recently trading back to the 92 handle levels we haven’t since seen November 2020. So once again, another busy week ahead with lots to stay dialed in on as the focus remains on rates and commodities on the rise.

Photo by Zbynek Burival on Unsplash