- S&P 500 Futures drop for the second consecutive day.
- Uncertainty over Fed’s future action amid heavy stimulus troubles traders.
- Pre-US CPI cautious mood, light macro also weigh on the mood.
S&P 500 Futures take offers around 4,150, down 0.75% intraday, as market sentiment remains sour during early Tuesday. In doing so, the risk barometer follows the Wall Street benchmarks amid a quiet session in Asia, despite China’s key inflation data.
US equities failed to keep Friday’s recovery moves the previous day as investors sought more clues to believe that the US Federal Reserve (Fed) isn’t planning to recall the easy money policies. The fears could have taken clues from the mixed comments from the Fed policymakers and expectations that the heavy stimulus will heat the world’s largest economy, requiring the Fed’s meddling.
Read: Wall Street Close: DJI30 drops from fresh record high, Nasdaq down 2.55%
Recently, chatters that the US Republican Party members have eased their opposition to President Joe Biden’s stimulus packages gain momentum. Additionally, the US Treasury yields have also stalled their two-day downtick and joined reflation fears. Hence, the troubled trades await Wednesday’s key inflation data for fresh impetus/
In addition to the general catalysts, the beating of the technology shares mainly due to the Citibank downgrade also dragged the American shares.
Amid these plays, stocks in Asia-Pacific remain depressed even as China’s PPI jumped to the highest since October 2017.
Looking forward, investors will keep their eyes on more clues to determine the Fed’s future action after the latest signals to alter monetary policies by the Bank of Canada (BOC) and the Bank of England (BOE).
Read: What impact will CPI have on the outlook for the USD next week?