S&P 500 Futures snap two-day downtrend on AstraZeneca news, stimulus hopes

S&P 500 Futures picks up bids from two-week low.
AstraZeneca conveys 76% efficacy of vaccine over covid variants.
US Senators vote on extending PPP, $3.0 trillion stimulus eyed.
Chatters concerning China, North Korea tried to favor bears, US 10-year Treasury yields pause the latest fall.

Anil Panchal FXStreet

S&P 500 Futures extend corrective pullback from 3,877 to 3,890, up 0.25% intraday, by the press time of early Thursday. In doing so, the risk barometer reacts to the latest vaccine trial update from the Anglo-Swedish drugmaker AstraZeneca. Also favoring the bounce could be expectations of further stimulus from the US government.

AstraZeneca’s 76% efficacy over the coronavirus (COVID-19) and 100% ability to battle the headline virus shrug off the chatters that the leading vaccine isn’t safe for use. During the last two weeks, a few European countries have stopped using the AstraZeneca vaccine over allegations of blood clotting. The news renews the vaccine optimism and hopes of faster economic recovery.

Also on the positive side is the US Senate voting on the extension of the Paycheck Protection Program (PPP) beyond the March 31 expiry as well as hints over a $3.0 trillion infrastructure spending plan.

Alternatively, the US Securities and Exchange Commission’s (SEC) run-up to oust foreign companies, indirectly targeting Chinese firms, which do not comply with the American auditing standards and are run by their respective government weigh on sentiment. Further, North Korea’s missile test and mixed clues from the Fed policymakers are also challenging the risk-on mood.

Amid these plays, the US 10-year Treasury yield holds above 1.60% after declining to the lowest in over a week during the last three days. It’s worth mentioning that the Asia-Pacific shares are also mildly positive while the US dollar index (DXY) steps back after recently refreshing the yearly top.

Moving on, a lack of major data ahead of the US GDP and speeches from the central bankers of the US, Europe and the UK could test the market sentiment.

Also read: Wall Street Close: Stocks drop back to fresh weekly lows

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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