S&P 500 Futures: Covid vaccine, geopolitics probe bulls near record top, Fed in focus
- S&P 500 Futures struggle for a clear direction amid a quiet session in Asia.
- Doubts over AstraZeneca’s coronavirus vaccine dims vaccine optimism.
- North Korea warns US while American Navvy warns over China’s invasion of Taiwan.
- Japan’s decision on emergency, US Retail Sales can entertain traders ahead of the key FOMC.
S&P 500 Futures pick up bids around 3,960, up 0.07% intraday, during early Tuesday as bulls catch a breather following a six-day winning streak. Although US covid stimulus and steady vaccinations keep buyers hopeful, the raw over AstraZeneca vaccine and risk-negative signals from Asia seem to challenge the mood.
Read: Wall Street Close: Stocks rally into the close for fresh all-time highs
Following multiple European Union (EU) members’ rejections to the AstraZeneca coronavirus (COVID-19) vaccine, the US is also eyeing further checks over the key vaccine as President Joe Biden is determined to offer 100 million jabs in the next 10 days. Should the leading vaccine turns out to be a riskier bet to overcome the deadly virus, market sentiment may drop in the coming day.
Elsewhere, North Korea warned the US over its ties with South Korea and military drills near the hermit kingdom’s border. Further, Politico suggests fears of China invading Taiwan and exerts additional downside pressure on the risks amid a quiet day in Asia.
On the contrary, US President Biden and Vice President Kamala Harris, together with their families, are up for a cross-country trip to promote spending after the government passed a $1.9 trillion stimulus. Also positive to the risks could be hopes of better cooperation between the US and its Asia-Pacific allies as the American Secretary of State is on his first trip to visit the friends.
It should, however, be noted that the market sentiment remains sluggish ahead of this week’s Fed meeting, up for Wednesday, wherein the FOMC members are likely to cheer US covid relief package and may upwardly revise their dot-plot forecasts. Though, fears of reflation will be the key to watch in the Fed statement.
Against this backdrop, stocks in Asia-Pacific print mild gains whereas the US 10-year Treasury yield declines 1.2 basis points (bps) to 1.595% by the press time.
Looking forward, US Retail Sales for February can offer immediate direction to the markets ahead of tomorrow’s key FOMC.
Read: US Retail Sales February Preview: Will the real consumer please stand up?