S&P 500 Futures slips below 3,900 amid consolidation from record top
- S&P 500 Futures refresh intraday low amid a quiet session.
- Wall Street closed negative following downbeat US CPI, Powell’s repeated words.
- Biden-Xi talks kept the Sino-American tension on the table.
- Off in China, Japan and a light calendar bore traders in Asia.
S&P 500 Futures hold lower grounds while extending the previous day’s pullback from record top to 3,897, down 0.15% intraday, during early Thursday. In doing so, the risk barometer also marks a three-day losing streak despite Wednesday’s uptick to 3,928.
Recently, US President Joe Biden talked with his Chinese counterpart Xi Jinping to convey the wishes for the Chinese Lunar New Year. Both the national leaders talked for the first time since US politics changed after the blue wave. However, Biden didn’t refrain from conveying the American dislike for China’s coercive economic policies.
Following sluggish prints of US Consumer Price Index (CPI) data for January, risks sour during Wednesday. The sentiment also took clues from US stimulus gridlock that has been flashing optimistic signs but fail to impress bulls off-late.
It’s worth mentioning that Fed Chair Jerome Powell reiterated the US central bank’s readiness to act when necessary. Though, his comments suggesting the downbeat American employment sector added strength to the bearish moves.
As a result, the US 10-year Treasury yields stretched pullback from March 2020 highs, marked earlier in the week, whereas Wall Street benchmarks also closed in the red.
Looking forward, the US weekly Jobless Claims and updates over the $1.9 trillion covid relief stimulus will be awaited for fresh direction.
Read: US Initial Jobless Claims Preview: The trend's the thing
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.
