Year-ahead inflation expectations increased from 4.6% in September to 4.7% in October. Long-run inflation expectations grew from 3.4% to 3.5%. According to the report, consumers were worried about the cost of living.
Oil prices were mostly flat as President Trump announced that Russia will immediately supply over 300,000 tons of diesel to U.S. and global markets. According to Trump, Russia will supply 500,000 tons in November and 1,000,000 tons thereafter. The deal with Russia was made during a call with Russia’s President Putin.
Treasury yields gained some ground as traders remained worried about inflation. The yield of 2-year Treasuries climbed towards the 4.79% level, while the yield of 10-year Treasuries settled near 5.25%.
Consumer cyclical and healthcare stocks were among the biggest gainers today. Communication services stocks found themselves under pressure.
Currently, SP500 is trying to settle above the resistance at 7815 – 7825. In case this attempt is successful, SP500 will move towards recent highs near the 7850 level. If SP500 climbs above 7850, it will head towards the 7900 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.