S&P 500 Futures: Down over 1.50% as risk-off mood remains at full steam

• US stock futures dumped amid intensifying risk-off mood.
• Coronavirus curbs, banking woes hit risk, boost the dollar.
• US fiscal gridlock remains a drag ahead of Fed’s Powell.

The risk sentiment took a further hit in the European session, as the S&P 500 futures (risk barometer), extended the declines below 3,300 levels to hit fresh two-month lows of 3,248.

At the press time, the US stock futures trim losses to trade around 3,270, still down 1.50% on the day. The bears tightened the grip after the coronavirus lockdown worries aggravated in the European trading and knocked-off the regional equities.

The virus second-wave is intensifying in Europe, with a spike in infections prompting authorities to consider reimposing region lockdowns and stricter measures. Denmark and Greece already announced new restrictions last Friday.

The UK Prime Minister (PM) Boris Johnson is weighing in another lockdown while parts of the Spanish capital Madrid are under lockdown restrictions once again to contain the virus spread. 

The market sentiment also remains dampened by the sell-off in the banking sector stocks on the European indices. Reports of HSBC, Standard Chartered, Barclays and other banks allegedly involved in illicit money flows hammered their stocks to the lowest levels since 1998.

Further, the gridlock on the US fiscal stimulus also does little to boost the market mood but underpins the haven demand for the greenback across its main competitors.

Attention now turns towards the  US Federal Reserve (Fed) Chairman Jerome Powell’s speech for fresh hints on the monetary policy, which could have a significant impact on the Wall Street sentiment.