S&P 500 Futures snap two-day uptrend around 4,150 on uneven catalysts

  • S&P 500 Futures remain depressed near intraday low.
  • China data disappoints, UN refrains from Gaza meddling.
  • Wall Street cheered downbeat US data, Fed’s defense of easy money.
  • Fedspeak, geopolitics will offer fresh impulse amid a light calendar.

S&P 500 Futures mark the first downside in three days while taking offers around 4,162, down 0.18% intraday, during early Monday. The risk barometer recently reacted to downside data from China as well as geopolitical headlines from the Middle East while reversing recent gains.

With the downbeat Industrial Production and Retail Sales joining chip shortage, China’s National Bureau of Statistics (NBS) said, “China's economic recovery remains uneven.” This contrasts with upbeat signals from the US and the UK that have earlier boosted market sentiment.

Read: China’s NBS: Economic recovery remains uneven

Also on the risk-negative side is the United Nations (UN) rejection to intermediate directly in the Israel-Palestine tussle, for which China alleges the US. This could keep the one-week-old war extended and risk more lives in the Middle East, indirectly helping oil prices.

Elsewhere, chatters surrounding extension to China’s trade-negative measures for Australia and the Fed’s battle versus inflation keep the traders troubled after witnessing risk-on mood during Friday.

US Retail Sales and Michigan Consumer Sentiment Index helped the US Federal Reserve (Fed) policymakers to defend easy money policies, turning down the tapering and/or rate hikes woes, on Friday. This helped Wall Street benchmarks while weighing on the US dollar index (DXY) and the Treasury yields.

It’s worth mentioning that the US 10-year Treasury yields remain pressured around 1.62% but the DXY consolidates Friday’s losses around 90.40 by the press time.

Moving on, multiple Fed policymakers are up for speeches and will be observed for fresh direction. Also, the ongoing battle in Gaza and China’s recently downbeat signals can weigh on the market sentiment.

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