- S&P 500 Futures print four-day winning streak to challenge February 21, 2020 top.
- US policymakers show readiness to overcome the stimulus deadlock.
- US Jobless Claims, talks over the phase 4 aid package will be the key.
S&P 500 Futures is well bid near 3,326.60, intraday high 3,327.38, during the initial hour of Tokyo open on Thursday. The risk barometer gains 0.30% on a day while filling the late-February gap below 3,328.
The equity benchmark portrays the market optimism concerning the US Congress’ ability to deliver details of the unemployment claims benefits despite crossing Friday’s expiry. Latest communications from the House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell increase the odds of the same. In a case of any discrepancies to clinch the deal before the August vacation, US President Donald Trump stays ready to use executive order and mark his power.
Other than the diplomats’ readiness to overcome the policy deadlock, economic urgency, as cited by the latest employment indicators, also becomes the pushing factor for the market’s expectations of further stimulus. Not only the headline ADP Employment Change data but the employment component of the ISM Non-Manufacturing PMI also cites the fear of a downbeat job report for July.
While identifying the same threat, President and CEO of the Federal Reserve Bank of Cleveland Loretta Mester said, “The US is going to need much more fiscal support.”
Looking forward, traders will have a few catalysts to watch on the economic calendar, except for weekly US Jobless Claims, expected 1,415K versus 1,434K. However, political statements and the coronavirus (COVID-19) headlines could keep the markets active ahead of Friday’s critical US Nonfarm Payrolls (NFP).
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