S&P 500 Futures print mild gains as US Senate passes covid relief bill

• S&P 500 Futures cheer hopes of economic recovery even as reflation fears challenge the bulls.
• Sino-American tension, Houthi-Saudi tussle question the moves amid a light calendar.

S&P 500 Futures seesaws around 3,845, up 0.15% intraday, during early Monday. In doing so, the risk barometer begins the week on a front foot while justifying the US policymakers’ push to the much-awaited coronavirus (COVID-19) stimulus.

US Senate finally backed President Joe Biden’s $1.9 trillion covid relief package with 50-49 votes during late last week. The bill, called American Rescue Plan Act, will now be discussed in the House and maybe voted on Tuesday.

Elsewhere, China’s Foreign Minister Wang Yi urged the US, per Bloomberg, to “stop crossing lines and playing with fire” on Taiwan. On the same line, Iran-backed Houthi rebels say they targeted Saudi oil port, said the Wall Street Journal (WSJ).

The economic calendar is mostly silent after the latest Japanese Trade Balance for January,
¥-130.1 B, crossing paths with China’s Trade Balance (USD terms) for January-February, up 60%.

Amid these plays, US 10-year Treasury yields rise 3.1 basis points (bps) to 1.585% whereas stocks in Asia-Pacific stay positive by the press time.

Looking forward, investors will keep their eyes on the US traders’ reaction to the market-positive news, especially after Friday’s upbeat NFP. However, further run-up in the US Treasury yields may challenge the bulls and favor the US dollar upside.