S&P 500 Futures: Mildly bid around three-week low as US inflation probes Fed tapering chatters


  • S&P 500 Futures consolidate the previous day’s losses amid sluggish session.
  • US CPI drops the most since January but YoY figures keep Fed taper on the table.
  • Vaccine, stimulus optimism favor bulls during a quiet session ahead of China data dump.

S&P 500 Futures portrays a corrective pullback from the lowest since late August, flashed the previous day, during Wednesday’s Asian session.

The risk barometer dropped to the multi-day on Tuesday after the US Consumer Price Index (CPI) data for August confused markets.

The US CPI dropped the most since January on monthly basis to 0.3% versus 0.4% expected and 0.5% prior. The CPI ex Food & Energy also dropped below 0.3% expected and previous readings to 0.1% during August, marking the biggest fall in six months. Fed’s readiness to accept a bit higher inflation figures, terming it ‘transitory’, seems to be at the test with almost double YoY figures than the US central bank’s previous target range of near 2.0%.

Recently favoring the stock futures could be the hopes of faster vaccinations in the UK, Australia and the US. It was also observed that the World Health Organization (WHO) urges India for vaccine donation to African countries as the Asian nation overcomes the initial virus woes and has the world’s faster jabbing of late.

Furthermore, concerns surrounding US President Joe Biden’s six-pronged strategy and the US-China tussles, recently over Taiwan, add to the market’s indecision as traders await the key data, Industrial Production and Retail Sales for the dragon nation.

Amid these plays, the US 10-year Treasury yields dropped the most in a month on Tuesday, before recently recovering to 1.29%.

Moving on, a light calendar in the US ahead of Thursday’s Retail Sales and Friday’s Michigan Consumer Confidence may push the market players towards more qualitative catalysts for fresh impulse.

Read: What does soft CPI mean for FOMC and USD?

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