S&P 500 Futures keep the bulls hopeful near 8-week high

S&P 500 Futures register 0.30% gains.
The S&P 500 is up for its best month since 1974.
Trades ignored disappointment from the Fed, US GDP amid hopes of the virus cure.
US President Trump’s push for economic restart, tech shares’ performance add to the market’s optimism.

Anil Panchal FXStreet

While probing eight-week top, S&P 500 Futures register 0.30% gains to 2950 a few minutes ahead of the Tokyo open on Thursday. The US equity gauge is on its run to mark the best month since 1974, with over 13% gains so far in April, while counting the spot.

In doing so, the equity index seems to pay a little heed to the US Federal Reserve’s latest monetary policy meeting and the US Q1 GDP that spread negative vibes.

The reason could be traced from the market’s optimism concerning the cure of the coronavirus (COVID-19). Gilead’s latest update for the promising drug, Remdesivir, suggests that the experimental cure to the pandemic provides upbeat results during the initial trials.

With that, US President Donald Trump pushes the Food and Drug Administration (FDA) towards approving the drug to be used for the vaccine. The Republican leader also continues to favor the early economic re-open in his latest daily virus briefings.

On the other hand, US 10-Year Treasury yields seem to wait for further upside while taking rounds to 0.619% after the previous day’s upbeat performance.

Although updates surrounding the drug will keep traders busy on Japan’s full market return after Wednesday’s bank holiday, China’s PMI, Eurozone GDP, and the ECB meeting will be the key catalysts to watch for the day.

Additionally, further recovery in oil prices could also offer extra support to the equities.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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