Futures on the S&P 500 remain slightly bid near intraday highs.
Employment conditions, according to Fed Chair Powell and others on the committee, are a crucial factor in the need for more stimulus.
The positive momentum is boosted by progressing talks regarding US President Biden’s infrastructure investment.
PMIs and Fedspeak remain important drivers, while covid and stimulus may also entice traders.
In the early hours of Wednesday, bids for S&P 500 Futures were around 4,240, up 0.14 percent intraday. The risk barometer has risen in the last two days as Fed hawks retreat and optimism about the economy’s recovery from the pandemic grows.
Stock futures are tracking Wall Street gains, with comments from Federal Reserve Chairman Jerome Powell indicating that the US central bank’s monetary policy will face no imminent difficulties. For the time being, Cleveland Fed President Loretta Mester and New York Fed President John Williams were likewise opposed to policy changes.
On the same note, NBC reported that “a key moderate Democratic senator opened the door Tuesday to investing in President Joe Biden’s ‘human infrastructure’ proposals and unwinding some of the Republican tax cuts of 2017,” implying that “a key moderate Democratic senator opened the door Tuesday to investing in President Joe Biden’s ‘human infrastructure’ proposals and unwinding some of the Republican tax cuts of 2017.”
US Treasury rates have dropped one basis point (bp) to 1.46 percent, providing more assistance to the S&P 500 Futures.
Read more about Wall Street Close: Nasdaq Refreshes Record High as Fed’s Powell Calms Tapering Talks, Rate-Hike Talks
Concerns over the Delta Plus strain of the coronavirus (COVID-19) and fresh US-China squabbles, following Beijing’s inability to import agreed-upon American commodities, are weighing on the market’s optimism in the midst of a quiet session. On the same side, China’s military made recent comments about US vessels transiting the Taiwan Straits.
Looking forward, investors may be bored by a dearth of important data/events in Asia, but the scheduled readings of June’s preliminary PMIs and Fedspeak may provide an active, generally bullish day afterward.
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