- S&P 500 Futures print mild gains despite US Treasury yields stay bid.
- US President Biden’s readiness to compromise on spending plan, covid vaccine optimism favor bulls.
- Russia, China and fears of virus infection test upside momentum.
S&P 500 Futures pick-up bids to 4,162, up 0.22% intraday, during early Tuesday. In doing so, the risk barometer refrains to extend the previous day’s pullback from the record top amid mixed catalysts.
On the positive side are the hopes to overcome the deadlock of the $2.25 trillion US infrastructure spending plan, unveiled by President Joe Biden, as the Democratic Party member showed readiness to alter the details on Republicans’ criticism. Further, escalating the coronavirus (COVID-19) vaccinations in the US, the UK and Israel are also favorable to the market sentiment.
It’s worth mentioning that the easing of activity restrictions and travel guidance by the governments of the UK, Australia and New Zealand add to the risk-on mood.
Meanwhile, the covid cases remain elevated in Europe and India, which in turn probe the risk-on mood. Also on the same side are chatters surrounding Russia’s military build-up and the US push for Hong Kong freedom.
It should be noted that the Wall Street benchmarks turned red the previous day amid likely challenges to technology stocks and cautious sentiment ahead of the key earnings.
While the S&P 500 Futures stay positive, the US 10-year Treasury yields extend the previous day’s upside momentum beyond 1.60% but the US dollar index (DXY) fails to rebound after the heaviest drop in 2021.
Looking forward, a light calendar requires investors to keep their eyes on risk catalysts. Among them, US-China and America-Russia headlines may entertain markets while the covid and vaccine updates should also play their roles.
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