S&P 500 Futures: Firmer above 4,500 amid sluggish US Treasury yields, quiet session
- S&P 500 Futures consolidate the previous day’s losses amid lacklustre markets.
- US bond bears’ pause, light calendar and easing virus figures from Asia-Pacific adds to the cautious optimism.
- Fedspeak, US stimulus and virus updates can entertain traders ahead of the key ECB decision.
S&P 500 Futures portray a mildly optimistic market scenario during early Wednesday, up 0.08% around 4,520 at the latest.
In doing so, the risk barometer takes clues from the recently sluggish US Treasury yields and slightly upbeat covid numbers from New Zealand and China, ignoring a spike in the Aussie COVID-19 infections.
The key gauge of the US stock futures dropped the most since August 18 on Tuesday after the US and Canadian traders magnified the risk-off mood, mainly taking clues from the coronavirus and stimulus headlines. Also weighing on the mood could be the remembrance of the last week’s US jobs report and ISM data highlighting economic challenges.
The doubling of the virus-led hospitalizations in the US in a year and a 67% hike in the covid-led deaths in the last two weeks, versus the previous period, portrays the COVID-19 fears in America. The same push President Joe Biden towards a six-pronged strategy, the details of which will be out on Thursday and Friday.
In separate news, CNN marked hardships for the Democratic party-backed stimulus while saying, “House Republicans could face increased pressure to vote against a bipartisan infrastructure package when they return to Washington later this month.” On the same line, Axios came out with the news stating, “Sen. Joe Manchin (D-W.V.) has privately warned the White House and congressional leaders that he has specific policy concerns with President Biden's $3.5 trillion social spending dream — and he'll support as little as $1 trillion of it — Axios' Hans Nichols scoops.”
Given the light calendar and the pre-ECB caution, markets may remain calmer but covid and stimulus headlines could entertain the traders. Also important will be the comments from Fed New York President John C. Williams.
Read: US 10-year Treasury yields seesaw around two-month top amid risk-off mood