S&P 500 Futures stay mildly bid above 4,200 on Fedspeak, stimulus hopes
- S&P 500 Futures fails to extend the previous day’s pullback moves amid a quiet session.
- US Treasury Secretary Yellen backs Fed policymakers’ defensive play.
- Senators sound optimistic over Biden’s infrastructure spending ahead of two-week holiday.
- US Durable Goods Orders, risk catalysts eyed for fresh impetus.
S&P 500 Futures stay firmers around 4,220, up 0.20% intraday, during Thursday’s Asian session. The risk barometer stepped back from the weekly top the previous day before the markets believed in the Fed’s defense to easy money policies, as well as increasing odds favoring the passage of another stimulus from US President Joe Biden.
Not only a slew of Democratic Senators but Mitt Romney from Republicans also sounds optimistic in the latest updates concerning Biden’s $1.2 trillion infrastructure spending plan. The US policymakers are in a rush to finalize and pass the bill ahead of a two-week-long holiday season.
Read: Wall Street Close: Nasdaq stays firmer even as Dow, S&P 500 retreat
Also on the positive side could be the headlines concerning US Treasury Secretary Janet Yellen’s rejection of the reflation fears, indirectly favoring the majority of the Fed policymakers in turning down rate hike calls. It’s worth noting that expectations of a Fed rate hike recently stepped back from December 2022 to February 2023.
On the contrary, fears of the covid variant regain traction in the US as an Epidemiologist warns over the jump in the cases in this fall. The Delta Plus variant of the coronavirus (COVID-19) recently pushed back the UK’s unlock deadline and is the key concern for the British government amid the latest 41% jump in daily cases.
Elsewhere, China’s warning to the US over having warships in the Taiwan Straits didn’t stop the Biden administration from restricting exports to five companies from Beijing.
Talking about data, US Markit PMIs were mixed with manufacturing gaining more than services. Further, activity numbers from the UK were on the same line but those from European Union remained firmer for June.
Amid these plays, Wall Street closed mixed and the US Treasury yields struggled to stay positive.
Looking forward, investors will keep their eyes on the BOE monetary policy and the US Durable Goods Orders for fresh impulse. However, major attention will be given to how the American Senators break the deadlock over the much-awaited extra stimulus, as well as the Fedspeak and covid headlines.