- S&P 500 Futures take offers around intraday low following its run-up to all-time high the previous day.
- Vaccine jitters, mixed data and a lack of fresh catalysts test market bulls.
- Stimulus hopes, upbeat US figures and faster covid jabbing back the risk barometer’s run-up.
- Return of full markets needs cautious optimism even as US Treasury yields drop for the third day.
S&P 500 Futures snap four-day winning streak while easing from the all-time high around 4,075 to 4,061, down 0.14% intraday, during early Tuesday. The risk barometer jumped to the record top the previous day as market sentiment cheered upbeat US ISM Services PMI and increasing odds of US President Joe Biden’s $2.25 trillion infrastructure plan even as Republicans warn over the tax hikes.
Faster vaccinations and unlock efforts in the UK and the US are extra catalysts to favor the market bulls. However, the recent challenges to the AstraZeneca vaccine and the Bank of Japan’s (BOJ) warning over rate cuts seem to test the optimists.
Additionally, New Zealand’s readiness to open the national border with Australia and China’s strong Caixin Services PMI for March was some of the extra positive news that could have favored the S&P 500 Futures. However, the return of all the traders after an extended weekend seems to give rise to the recent consolidation.
Amid these plays, the US 10-year Treasury yield drops 3.2 basis points (bps), down for the third consecutive day, whereas stocks in Asia-Pacific trade mixed by the press time.
Although the Wall Street rally keeps buyers hopeful, amid the aforementioned catalysts, S&P 500 Futures may have to wait for more clues and European traders’ reaction to the latest positive US fundamentals for fresh direction.
It’s worth mentioning that the economic calendar lacks any major data/events, except for the RBA monetary policy, which in turn could favor the short-term counter-trend traders.
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