S&P 500 Futures track Wall Street’s losses to revisit mid-4,100s

S&P 500 Futures drop for the second consecutive day.
Uncertainty over Fed’s future action amid heavy stimulus troubles traders.
Pre-US CPI cautious mood, light macro also weigh on the mood.

Anil Panchal FXStreet

S&P 500 Futures take offers around 4,150, down 0.75% intraday, as market sentiment remains sour during early Tuesday. In doing so, the risk barometer follows the Wall Street benchmarks amid a quiet session in Asia, despite China’s key inflation data.

US equities failed to keep Friday’s recovery moves the previous day as investors sought more clues to believe that the US Federal Reserve (Fed) isn’t planning to recall the easy money policies. The fears could have taken clues from the mixed comments from the Fed policymakers and expectations that the heavy stimulus will heat the world’s largest economy, requiring the Fed’s meddling.

Read: Wall Street Close: DJI30 drops from fresh record high, Nasdaq down 2.55%

Recently, chatters that the US Republican Party members have eased their opposition to President Joe Biden’s stimulus packages gain momentum. Additionally, the US Treasury yields have also stalled their two-day downtick and joined reflation fears. Hence, the troubled trades await Wednesday’s key inflation data for fresh impetus/

In addition to the general catalysts, the beating of the technology shares mainly due to the Citibank downgrade also dragged the American shares.

Amid these plays, stocks in Asia-Pacific remain depressed even as China's PPI jumped to the highest since October 2017.

Looking forward, investors will keep their eyes on more clues to determine the Fed’s future action after the latest signals to alter monetary policies by the Bank of Canada (BOC) and the Bank of England (BOE).

Read: What impact will CPI have on the outlook for the USD next week?

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.

GBP/USD remains in two-day highs around 1.3260

GBP/USD adds to Friday’s bounce, gathering fresh traction and flirting with the 1.3270 zone on Monday, or two-day tops. Cable’s decent advance comes despite the move higher in the Greenback and investors’ assessing of UK PM K. Starmer's resignation.

EUR/USD remains close to three-month lows near 1.1450

EUR/USD sets aside Friday’s bounce and trades with modest losses in the mid-1.1400s at the beginning of the week. The continuation of the bid bias in the US Dollar continues to weigh on spot despite improving sentiment from the geopolitical front.

Gold bounces off lows, looks to surpass $4,200

Gold regains composure and leaves behind three-consecutive daily declines on Monday, looking to regain the area above the $4,200 mark per troy ounce. Reports of progress in the latest round of US-Iran talks are helping the precious metal maintain its footing at the start of the week, although the stronger Greenback seems to limit the upside potential for now.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

Is Shiba Inu dead or just in a crisis? The data behind SHIB's 95% crash

SHIB, the dog-themed meme coin that became one of the biggest success stories in crypto and turned early buyers into crypto millionaires, is facing tough times. Its price has fallen more than 32% so far this year, and it is down 95% from its all-time high in 2021. Is SHIB simply another fading meme coin, or is the market overlooking a possible recovery story?

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.