Stocks Move Higher Ahead Of Bidens Budget Proposal

U.S. President Joe Biden Is Expected To Unveil A Huge $6 Trillion Budget Proposal

S&P 500 futures are gaining ground in premarket traders as traders look ready to buy stocks ahead of the long weekend.

On Monday, the markets will be closed due to Memorial Day, so today is the last chance to rebalance positions until next Tuesday.

Treasury yields are moving higher today, and the yield of 10-year Treasuries is trying to settle above the resistance at the 20 EMA at 1.615%.

However, stock traders ignore inflation fears and focus on Biden‘s budget proposal which is expected to total $6 trillion. Biden’s plan is to boost government spending to make U.S. more competitive, and the plan includes money for various infrastructure programs. In this light, infrastructure-related stocks may enjoy a strong trading session today.

Personal Income Declined By 13.1% In April

The U.S. has just released Personal Income and Personal Spending reports for April. Personal Income declined by 13.1% month-over-month compared to analyst consensus which called for a decline in 14.1%. In March, Personal Income increased by 20.9% (revised from 21.1%) due to stimulus payments.

Personal Spending increased by 0.5% month-over-month in April, in line with the analyst consensus.

Today, traders will also have a chance to take a look at the final reading of Michigan Consumer Sentiment report for May which is projected to indicate that Consumer Sentiment declined from 88.3 in April to 82.9 in May.

Bitcoin Falls Below $37,000 While Other Cryptocurrencies Are Under Pressure

While the sentiment is clearly bullish in the stock market, the crypto market suffers a sell-off. Bitcoin has failed to settle above the key resistance at $40,000 and pulled back below the support at $37,000.

Other cryptocurrencies have also found themselves under pressure today. At this point, weakness of the crypto market had no impact on other markets, and it looks that some speculative traders have preferred to trade “meme stocks” instead of crypto in recent trading sessions.