- S&P 500 Futures stays depressed near monthly low, flashed the previous day.
- Wall Street kept the red despite upbeat US Treasury yields.
- Israel-Palestine tussle, mixed covid vaccine updates add to the risk-off mood.
S&P 500 Futures take offers around 4,135, down 0.25% intraday, during the early Wednesday. The risk barometer dropped to the lowest since early April the previous day as market sentiment worsened ahead of the key US data.
The risk-off mood gets support from the escalating geopolitical tensions in the Middle East as well as mixed updates concerning the coronavirus (COVID-19) vaccines and a light calendar.
The United Nations (UN) pushed for peace at Gaza strip but the tussle among the old enemies continues afterward. On the other hand, Bloomberg terms China’s sinovac covid vaccine as “effective in real-world study” whereas the US Centers for Disease Control and Prevention (CDC) found 23 blood clotting issues linked to the Johnson & Johnson jabbing.
An absence of the key data/events in Asia becomes an extra reason for the market players to extend the previously sour sentiment.
It’s worth mentioning that the Wall Street benchmarks flashed another day in the red on Tuesday. The Dow Jones Industrial Average (DJIA) posted the heaviest drop in seven weeks even as Nasdaq reversed most of the day’s losses after technology shares took a U-turn.
Read: Wall Street Close: Dow drops the most in seven weeks to end the volatile day
Shares in Asia-Pacific copy the moves of S&P 500 Futures while the US 10-year Treasury yields struggle for a clear direction around 1.62% after rising two basis points (bps) the previous day.
Although the economic calendar turns active during the European session, investors are less likely to behave to the ‘normal’ data reading, which matches the market consensus, ahead of the key US inflation figures for April, expected 3.6% YoY versus 2.6% prior. Herein, any hints that the latest run-up in prices could be temporary should buoy the sentiment.
Read: US Consumer Price Index April Preview: The two base effects of inflation
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.
Recommended content
Editors’ Picks
EUR/USD bounces back, trades above 1.0860
EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future.
GBP/USD turns north ahead of the weekly close, approaches 1.2700
GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell.
Gold resumes advance and approaches record highs
Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data.
Solana likely to extend gains as DeFi airdrop season could boost user base
Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report. SOL price extends rally, yielding nearly 4% daily gains.
Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside
TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.