Buy The Rumor Sell The News: Commodities Pointing Lower After Biden Announces Ban

Buy The Rumor Sell The News: Commodities Pointing Lower After Biden Announces Ban

Equity index futures are pointing to a higher open ahead of the Wednesday's JOLTS, or Job Openings, report. Stocks appear to be getting help from pullbacks in the commodity markets. Commodities are pulling back despite President Joe Biden announcing sanctions on Russian commodities that were announced on Tuesday. Heating oil, crude oil, and RBOB gasoline were down 8. 27%, 3. 31%, and 2. 11% respectively in pre-market trading. Each commodity is coming off 14-year highs. The EIA's weekly crude oil report is due later today, which will provide an update on oil and gasoline inventories. This report is one that can move these commodities. Natural gas futures also pulled back another 1. 17% before the opening bell, which may create a three-day losing streak of about 8. 6% if the selloff holds. Investors appear to be feeling more confident this morning as the Cboe Market Volatility Index (VIX) dropped 7. 74%. Gold futures also sold off 1. 51% before the bell, retracing most of Tuesday's gains. Gold has recently acted as a safe haven for investors concerned about the Russia-Ukraine conflict and rising inflation. Investors are also selling bonds this morning, causing the 10-year Treasury yield (TNX) to spike another