S&P 500 Futures print three-day uptrend as Fed’s Powell tames tapering woes

  • S&P 500 Futures remain mildly bid near intraday high.
  • Fed Chair Powell and others in the team cite employment conditions as the key to need further stimulus.
  • Progressing talks over US President Biden’s infrastructure spending add to the upside momentum.
  • PMIs, Fedspeak remains as crucial catalysts, covid and stimulus may entertain traders as well.

S&P 500 Futures pick up bids around 4,240, up 0.14% intraday, amid early Wednesday. The risk barometer rose during the last two days as the Fed hawks step back and the hopes of economic recovery from the pandemic strengthens.

Stock futures track Wall Street gains, led by comments from Federal Reserve Chairman Jerome Powell suggesting no immediate challenges to the US central bank’s monetary policy. Cleveland Fed President Loretta Mester and New York Fed President John Williams were also against policy adjustments for now.

On the same line were chatters surrounding US President Joe Biden’s infrastructure spending plan as NBC came out with the news suggesting, “A key moderate Democratic senator opened the door Tuesday to investing in President Joe Biden's ‘human infrastructure’ proposals and unwinding some of the Republican tax cuts of 2017.”

US Treasury yields keep the latest weakness around 1.46%, down one basis point (bp) and offer additional support to the S&P 500 Futures.

Read: Wall Street Close: Nasdaq refreshes record top as Fed’s Powell tones down tapering, rate-hike chatters

It’s worth noting that the fears of the Delta Plus variant of the coronavirus (COVID-19) and worries over the fresh US-China tussles, following Beijing's failures to import agreed American items, probe the market’s optimism amid a quiet session. On the same side were recent comments from China’s military relating to the US warships transiting Taiwan Straits.

Looking forward, a lack of major data/events in Asia may bore the investors but the scheduled readings of June’s preliminary PMIs and Fedspeak may offer an active day, mostly positive, afterwards.

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