S&P 500 Futures pierce 3,900 for the first time in March as US passes Biden’s stimulus

S&P 500 Futures rise for the third consecutive day, on the bids near intraday top off-late.
Chatters of upcoming $2.5 trillion infrastructure plan followed the passage of $1.9 trillion stimulus to favor risks.
US-China tussle, light calendar and pre-ECB cautious mood probe the sentiment.

Anil Panchal FXStreet

S&P 500 Futures stays on the front foot near the monthly high while taking bids around 3,910, up 0.40% intraday, during early Thursday. In doing so, the risk barometer recently benefited from the US House passage of President Joe Biden’s $1.9 trillion covid stimulus.

In addition to the much-awaited fiscal relief, market rumors that the US leader is ready with another liquidity boost, via infrastructure plan, also favored the mood. Furthermore, banks trying to reject the reflation fears despite the looming debt-to-GDP ratio and anticipated increase in stimulus add to the market optimism.

On the contrary, US Secretary of State Antony Blinken’s comments teasing Hong Kong Human Rights Violations, as well as lack of readiness to keep crossroads with Iran, indicates the geopolitical tension surrounding America will prevail and test the bulls.

It’s worth mentioning that a lack of major data/events and traders’ wait for the ECB monetary policy decision, not to forget a speech from US President Biden, keeps the traders at bay and portrays a quiet session in Asia off-late.

Amid these plays, the US 10-year Treasury yields consolidate recent losses of around 1.53% whereas stocks in Asia-Pacific trade mixed.

Investors will keep their eyes on the US Jobless Claims and ECB updates to keep the bulls happy. However, any further escalation in the Sino-American tension and/or surprises from the coronavirus and vaccine front shouldn’t be missed as well.

Read: Wall Street Close: Record close for the Dow as “value” stocks continue to outperform

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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