S&P 500 futures downed by Fed’s grim outlook, second virus wave fears
- Dour Fed outlook on the US economic recovery knocks-off risk
- Fears of the second wave of coronavirus in the US also weigh.
- Falling S&P 500 futures point to negative start on Wall Street.
S&P 500 futures are attempting a minor recovery and look to regain the 3150 level, having found some support near 3120.
The recovery attempts in the US stock futures appear shallow, as the risk-off sentiment remains at full steam so far this Thursday, with the European stocks down nearly 3% while the benchmark 10-year yields dive 7% to below 0.70 level.
The worsening market sentiment was mainly fueled by the US Federal Reserve’s (Fed) gloomy US economic outlook, as the central bank predicted a 6.5% contraction this year. The dour forecasts poured cold water on the recent economic recovery narrative, bolstered by the stellar US Non-Farm Payrolls data for May.
The appetite for risk assets soured further after fears over the second wave of coronavirus in the US gripped the markets. This comes as the US states push for deeper economic re-opening and also in light of the confirmed cases in America exceeding 2 million, per John Hopkins University data.
The bears now take a breather, as they await the US Jobless Claims data due on the cards at 1230 GMT for fresh insights on the US labor market situation. The key focus will be on the continuing claims, as the initial claims show a declining trend over the past couple of weeks.
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