S&P 500 Futures gain half a percent towards 3,650 amid stimulus hopes

S&P 500 Futures pick-up the bids near 3,640, up 0.50% intraday, during the initial hour of Tokyo open on Tuesday. While the US dollar recovery, coupled with the risk-off mood, trimmed the risk barometer’s November gains on Monday, comments from the Fed Chair Jerome Powell and Treasury Secretary Steve Mnuchin renewed hope of the US coronavirus (COVID-19) stimulus and favored the equity derivative off-late.

Fed Chair Powell highlights the moderated economic recovery moves and likely challenges during the near future as points to back his testimony in front of the Senate Banking Committee, before going live during Tuesday’s US session. On the other hand, Treasury Secretary Mnuchin urged Congress to use $455 billion from the CARES Act to satisfy the stimulus need.

Following that the Dallas Federal Reserve Bank President Robert Kaplan backed the push towards the aid package while seeing "very difficult" next three to six months.

Elsewhere, Moderna conveyed a 94% effective rate for its covid vaccine while filling for the authorization as an emergency COVID-19 drug to the US Food and Drug Administration (FDA). Furthermore, Brexit woes and chatters surrounding the Western tension with China offer additional catalysts to watch.

Not only S&P 500 Futures but stocks in Asia-Pacific also print gains while eyeing China’s Caixin Manufacturing PMI for November and the RBA. As market consensus suggest both these events to not be the market movers, traders will pay more attention to headlines concerning the US aid package and virus vaccine for fresh impetus. It’s worth mentioning that the US ISM Manufacturing PMI can offer additional directions to the traders.