S&P 500 Futures refresh record top around mid-3800s amid Biden-led optimism

S&P 500 Futures print four-day uptrend despite latest pullback from all-time high.
Biden’s initial executive orders rule-out Trump’s actions, emphasize virus combat, fiscal stimulus and environment protection.
Virus woes escalate, vaccine producers, WHO do their best to tame the pandemic.

Anil Panchal FXStreet

S&P 500 Futures seesaw near 3,850, up 0.10% intraday, during early Thursday. The risk barometer refreshed the record top to 3,854.88 before a few minutes while tracking its Wall Street counterpart to the north.

That said, the current market optimism takes clues from the US where Joe Biden took control of the Oval Office and wrote multiple executive orders to perform the pre-election promises from day one. Although his turning down of the Keystone XL Pipeline and push for clean energy seems to be less welcomed by the global oil producers, push for further stimulus and clear methodology to tame the coronavirus (COVID-19) favor risks.

Other than the White House headlines, the World Health Organization (WHO) also backs faster rollout of the covid vaccines, per Reuters, which in turn brightens the mood.

On the contrary, record deaths due to the virus in the UK and expectations of further worsening in the covid conditions join the pre-ECB mood to challenge the optimists.

Talking about the data, Japan’s trade balance surplus eased in December while Australia’s Unemployment Rate dropped to the lowest since May 2020.

Not only S&P 500 Futures but stocks in Asia-Pacific also stay positive while staying calm off-late. Though, the US 10-year Treasury yields recede to 1.085% by press time.

Looking forward, updates from the Biden administration will be the key for near-term market direction, as well as the BOJ, while the European Central Bank’s (ECB) monetary policy meeting will be the crucial event of the day.

Read: ECB Preview: Lagarde may trigger a “buy the dip” opportunity by trying to talk down the euro

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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