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  • S&P 500 Futures extend previous day’s recovery from the lowest in six weeks.
  • Fed’s rejection to inflation pick-up, upbeat US data favor risk-on mood.
  • All three Wall Street benchmarks rose for the first time in a week.
  • Covid, geopolitics and pre-US data caution probe the bulls amid a quiet Asian session.

S&P 500 Futures stays firm for the second consecutive day, up 0.30% intraday, while stretching the previous day’s strong recovery moves from early April lows during Friday. In doing so, the risk barometer seems to track the Wall Street benchmark that rallied the most in a week, not to forget snapping a three-day downtrend. It should, however, be noted that the coronavirus (COVID-19) updates join geopolitical tension from the Middle East to test the optimism of late.

Japan is set to escalate emergency measures and includes additional three prefectures, to already five, amid the latest jump in cases. The Asian major is likely to introduce heightened measures from this Sunday until June 01 and is ready to pull down the officials visiting the Olympics.

Elsewhere, the UK is also worried, per the BBC, as cases showing Indian strain of the covid doubled in a week. The same pushed the British Health Minister Matt Hancock to hint at local measures if needed.

Talking about Gaza, the US ambassador to the United Nations (UN) sought de-escalation in the Israel-Palestine tussles as the former is likely to have launched troops and air fighters of late. There is likely to be a UN meeting during this weekend over the issue.

On Wednesday, US Jobless Claims dropped to the pre-pandemic levels and the Producer Price Index (PPI) came in stronger. However, the Fed policymakers pushed for “multiple months of data” before thinking of any change in easy money actions.

Hence, today’s  US Retail Sales for April, as well as the  preliminary readings of the Michigan Consumer Sentiment Index for May will be the key for the markets as any strong outcome may strengthen the reflation fears and weigh on the equities.

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