S&P 500 Futures drop below 3,800 as markets turn cautious ahead of Biden’s inauguration


  • S&P 500 Futures test two-day winning streak while reversing from the intraday top.
  • Virus woes return to the table, Yellen’s commentary also probed bulls.
  • High security in White House amid fears that Capitol Hill drama could be repeated.
  • Hints off initial performance, more stimulus can propel sentiment.

S&P 500 Futures fail to extend the previous two-day uptrend beyond 3,800 while easing to $3,793 during early Wednesday. The risk barometer’s recent weakness could be traced from the fears of the coronavirus (COVID-19) vaccine shortage and US Treasury Secretary Janet Yellen’s speech. Also challenging the mood could be the cautious mood before the key event in the White House.

Following Yellen’s indirect challenge to China and US President Donald Trump’s investment proposals, bulls stepped backward even as the ex-Fed Chair signaled another stimulus package from the Democratic Party during the next month.

On the other hand, New York Governor Bill De Blasio expects to run out of the vaccine, which in turn challenges the US vaccination drive and combat the pandemic. On the same line, record daily covid-led deaths in the UK and extended lockdown in Germany also recalled the virus woes.

It should be noted that the economic calendar remained silent during Asia with Aussie Westpac Consumer Confidence and the rate decision from the People’s Bank of China (PBOC) be the only major event. While Australian sentiment data dropped below +4.1% prior to -4.5%, PBOC holds its monetary policy unchanged with a 3.85% interest rate.

Amid these plays, stocks in the Asia-Pacific region trade mixed whereas the US 10-year Treasury yields also struggle for a clear direction near 1.09% by press time.

Looking forward, inflation data from the UK, Europe and Canada will entertain markets before highlighting Biden’s speech in the White House. While the Democratic Party member is likely to reconfirm his support for the covid battle, any clear hints over the fiscal aid package will be welcomed by the investors.

Read: Biden inauguration & Bank of Canada: the odds of a micro cut

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD: Defensive below 1.0600 amid ECB news, cautious mood

EUR/USD: Defensive below 1.0600 amid ECB news, cautious mood

EUR/USD is under pressure below 1.0600, as the US dollar finds its feet amid a cautious market mood. The euro shrugs off the latest report, citing that the ECB may unveil a new bond-buying scheme to cap yields/spreads in July. ECB-speak, US data awaited. 

EUR/USD News

GBP/USD eases towards 1.2250 as USD attempts a bounce

GBP/USD eases towards 1.2250 as USD attempts a bounce

GBP/USD is falling towards 1.2250, extending a sluggish start to the week. The pair retreats amid a renewed uptick seen in the US dollar, as risk-off sentiment prevails. Recent negative Brexit and UK political news remain a drag on the pound. US data eyed. 

GBP/USD News

Gold: Can bulls defend the critical $1,820 support? Premium

Gold: Can bulls defend the critical $1,820 support?

XAUUSD opened a new week on a positive note but failed to sustain the previous upbeat momentum after running into strong barriers near the $1,842 region. The metal shaved off the early gains and fell nearly $20 from the highest point of the day to settle Monday in the red at $1,823.

Gold News

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect. The ongoing retracement hints at a 60% upswing to $3.50.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures