- S&P 500 Futures snaps six-day losing streak, bounces off three-week low.
- Powell tried to detail hopes of interest rate hikes, also conveyed fears of extended economic weakness.
- AstraZeneca unveiled a 94% effective rate to tame the hospitalization.
- Fears of US-China, Tehran-Washington tussle guard the optimism.
S&P 500 Futures pick up bids near 3,885, up 0.20% intraday, during the early Wednesday. In doing so, the risk barometer rises for the first time in seven days.
The corrective pullback from early February levels could be traced from Fed Chairman Jerome Powell’s efforts to derail fears of further inflation, followed by a surge in the rate. However, cautious optimism by the US central banker and the pending version two of testimony keep the market players confused.
Read: Powell speech: Inflation risks are to the downside
Also on the negative side could be US President Joe Biden’s readiness to join Canadian Prime Minister Justin Trudeau in an attempt to release two of Ottawa’s citizens from China. Furthermore, Iran’s rejection to respect American demand also challenges the mood.
On the contrary, AstraZeneca came out with the upbeat news that their vaccines can reduce 94% of hospitalizations. While the news helps risks, the firm’s comments to deliver less than 50% of the promised jabs to the European Union (EU) during the second-quarter (Q2) of 2021 test sentiment.
Elsewhere, Aussie Wage Price Index offered positive surprise but the RBNZ flashed mixed messages to challenge the market moves in Asia.
It’s worth mentioning that the US 10-year Treasury yields drop 1.7 basis points (bps) to 1.347% by press time.
Looking forward, market players will keep their eyes on Powell while trying to get extra clues for the US covid stimulus as the latest update suggests voting for the much-awaited stimulus on Friday. Also important will be the virus/vaccine updates as Japan is ready to unlock seven prefectures from the virus-led activity restrictions.
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