S&P 500 Futures drops 0.50% as trade sentiment dwindles
- S&P Futures fails to follow the previous day’s gains.
- Markets fail to cheer US stimulus, Fed action and hopes of further easing from the BOJ.
- Today’s US economic calendar could offer an active session.
While portraying the general risk reset, S&P 500 Futures register 0.50% declines to 2,767 by the press time of pre-Tokyo open on Friday.
The futures linked to the US equity gauge seem to have taken clues from the lack of any progress to find the cure of the coronavirus (COVID-19). The first trial on the Gilead’s Remdesivir failed to offer any promising results. Even so, US President Donald Trump keeps saying that we’re near to a vaccine.
Also weighing the market sentiment could be allegations on China by the US diplomats. Not only White House Adviser Larry Kudlow but US Secretary of State Mike Pompeo also copied the tunes of President Trump while stating that China failed to update the World Health Organization (WHO) promptly.
It’s worth mentioning that the passage of $484 billion aid package by the US House and the latest flattening of the virus curve stand on the positive side of the market. Further, the US Federal Reserve also facilitates small businesses via its latest moves.
On Thursday, a bit better US Jobless Claims and expectations of BOJ’s easing seems to have pleased Wall Street participants ahead of closing the day nearly flat due to the failure of the Gilead’s Remdesivir during the first trial.
Traders may now await fresh clues concerning the pandemic amid a light calendar in Asia. Though, US Durable Goods Orders and Michigan Consumer Sentiment Index might entertain the traders afterward. “Durable goods orders likely plunged, with a drop in new orders magnified by a surge in cancellations—the data are reported on a net basis. We forecast a 15.5% m/m tumble in headline orders and a 10% decline in the ex-transportation segment. Separately, the Michigan index was probably just modestly weaker in late April than in early April (TD forecast 70.0), consistent with the pattern in the Rasmussen index. The 71.0 level in early April was down sharply from 89.1 in March and 101.0 in February,” said TD Securities.