S&P 500 futures turn south, resurfacing coronavirus fears put 3,000 at risk

  • Coronavirus 2.0 fears negative upbeat China PMI led optimism.
  • Partial lockdowns in Australia, UK dampen market mood.
  • Negative US stock futures suggest a weaker open on Wall Street.

Having consolidated Monday’s rebound around 3,050 levels in the Asian trades this Tuesday, the S&P 500 futures broke the range trade to the downside, as the fears over the second-wave of coronavirus resurfaced and dampened the risk sentiment in Europe.

The market mood turned sour after headlines hit the wires that the Australian state of Victoria imposed fresh four-week lockdown in 10 areas, in light of the double-digit increase in the virus cases.

Further, the reports that a lockdown was imposed on the English city of Leicester, following a local flare-up of infections, also aggravated the risk-on mood and weighed on the higher-yielding assets such as the European equities, US stock futures, oil etc.

At the time of writing, S&P 500 futures shed 0.35% to trade near daily lows of 3,030.38 while the European equities trade with caution amid no improvement in the Eurozone core CPI figure.

Earlier in the Asian session, the benchmark US stock futures made several attempts to extend the recovery gains above the 3050 level, helped by the upbeat Chinese Manufacturing PMI data and quarter-end adjustment flows.

Looking ahead, a likely negative opening on Wall Street combined with discouraging US virus stats will continue to keep the futures under pressure. A test of the 3,000 mark cannot be ruled out if the Fed Chair Jerome Powell voices caution in his testimony later in the NA session. The US macro data will be also closely eyed for fresh trading incentives.

S&P 500 futures technical levels

The recovery momentum could likely pick up pace only above 3050, opening doors towards the next resistance at 3071.30 (10-DMA). While to the downside, the 200-DMA at 3027 offers immediate support, below which the 3000 mark (50-DMA/ round number) will be tested.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News