US Treasury yields, S&P 500 Futures drop amid Delta covid variant fears

US 10-year Treasury yields print four-day losing streak.
S&P 500 Futures fails to extend the previous day’s rebound.
Virus woes escalate despite vaccine optimism, Japan stimulus.

Anil Panchal FXStreet

Market sentiment remains sluggish during early Friday as the coronavirus jitters continue to favor the safe havens.

That said, the S&P 500 Futures drop 0.22% by the press time to 4,393 while the US 10-year Treasury yields drop two basis points (bps) to 1.24% by the press time.

It’s worth noting that the US Dollar Index (DXY) refreshes the nine-month high while staying firmer around 93.57 at the latest.

After refreshing the record daily infections to 758 the previous day, Australian infections for Thursday eased to near 700 figures of late. However, New Zealand’s covid cases are spreading outside Auckland as Wellington marked two new daily infections to print 11 daily cases on early Friday. Elsewhere, the UK reports a multi-day high death toll and the US numbers are also worrisome. Additionally, China reports the easing of cases to 33 versus 46 marked on Thursday.

On the contrary, the UK’s push for vaccinating 12–17 years old and the American rush for booster shots joins the Western leaders’ readiness to help the struggling Asia–Pacific nations with vaccines portray vaccine optimism and challenge the risk-off mood.

Also on the positive side, which was largely ignored, was Japan's cabinet approval of a 9.27 billion yen ($84.50 million) emergency budget to help the country's self-defense forces carry out medical aid amid the coronavirus pandemic, per Reuters.

It should be noted that the Wall Street traded mixed on Friday as the fourth week of drop in the US Jobless Claims battled downbeat Philadelphia Fed Manufacturing Survey details for August and tapering tantrums.

Read: Wall Street Close: Bears step back but not out of the woods

Looking forward, the US dollar may benefit from the safe-haven demand and can keep weighing on the commodities and Antipodeans amid a light calendar.

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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