S&P 500 Futures drop for third day as stimulus hopes disappoint
- S&P 500 Futures prints mild losses while extending the early-week pullback from September 03 high.
- US Treasury Secretary Steve Mnuchin dims odds of American stimulus before elections, local lockdowns in Europe gains more attention.
- US Weekly Jobless Claims, stimulus headlines will be important to watch.
S&P 500 Futures extend the previous two-day declines to 3,478, down 0.08% intraday, amid the initial hour of Tokyo open on Thursday. The risk-barometer has recently been weighed down by the fears of no US stimulus ahead of the American presidential election. Also challenging the market mood could be further worsening of the coronavirus (COVID-19) conditions in Europe amid halts in the virus vaccine trials.
Early in Asia, US Treasury Secretary Steve Mnuchin crossed wires, via Fox News, while blaming the opposition Democratic Party to stop the stimulus package to keep President Donald Trump lagging the election polls. Even so, the diplomat cited progress in the talks that will continue on Thursday.
It should be noted that the surging COVID-19 cases in the leading European countries, namely Spain, France, Germany and the UK, calls for strict local lockdowns in recent days. However, politicians’ resistances to the national activity restriction alarm have also been doubted and challenge the market sentiment.
Elsewhere, Brexit woes and downbeat US inflation, coupled with halts in vaccine trials by Johnson and Johnson as well as Eli Lily, also drag down the market sentiment.
While the Western catalysts weigh on the S&P 500 Futures and the US 10-year Treasury yields, dovish comments from Asian central bankers dragged down their risk indicators recently.
Looking forward, market players will keep eyes on the weekly US Initial Jobless Claims, expected 825K versus 840K prior, for immediate direction while keeping eyes on the main risk catalysts like aid package updates, virus news, etc.
Also read: Wall Street Close: Bulls shudder in the face of dying stimulus hopes