S&P 500 Futures show minor losses near the all-time high.
Traders are troubled by Covid problems and Fedspeak amid a light schedule.
Treasury rates in the United States are consolidating their worst daily losses in over a week.
Early Tuesday, S&P 500 Futures eased from a record high of 4,281.88, falling 0.15 percent intraday to 4,274. As a result, the risk barometer justifies the pause in the decline of US Treasury yields amid mixed concerns about the coronavirus (COVID-19) and US inflation, not to mention US President Joe Biden’s comments on infrastructure expenditure.
While Wellington is considering dropping the covid alert after a protracted absence of new virus cases, pandemic conditions in Australia appear to be worsening. “Today, new limits come into effect in parts of Queensland, with South Australia and the ACT restoring certain controls to address the threat of the Delta COVID-19 strain,” ABC news reported. In other news, the UK had its highest infection rate since January 30 on Monday.
Market mood is also weighed down by Fed members’ hesitation regarding inflation issues and the resulting pressure on the US central bank. Furthermore, US Vice President Joe Biden’s appeal for further expenditure, as well as Senate Republican Majority Leader Mitch McConnell’s efforts to temper Democratic demands, add to the traders’ perplexity and dampen mood.
It’s worth noting that the lack of important data/events, as well as quarter-end positioning and pre-NFP caution, all contribute to the current market tone.
However, the US 10-year Treasury yield is hovering at 1.48 percent after falling to its lowest level since June 18, while Asian stocks are showing minor losses as of press time.
Markets are likely to continue sluggish due to a lack of key data/events ahead of Friday’s US NFP. China PMI and Fedspeak, on the other hand, may provide intermediate changes.
Also see: Wall Street Close: Dow probes bulls, S&P 500, Nasdaq re-establish record highs amid mixed concerns
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