S&P 500 Prospects follow US Treasury yields to the south ahead of Powell-Yellen duet
- S & P 500 Futures fails to increase the prior day’s recovery moves, part ways from Wall Street gains.
- Cautions sentiment ahead of key testimony West Versus China struggle heavily the mood amid a light calendar.
- Early Signals recommend no challenges to further stimulus.
S & P 500 Futures print equable losses of 0.15% while moving back to 3,925 during early Tuesday. The risk barometer flips in favor of bears while neglecting losses of the US Treasury yields ahead of Congressional testimony by Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen.
Other than the pre-event cautious sentiment, geopolitical fears from the Western struggle with China over Xinjiang human rights violations also count on the sentiment. The network includes American, Europe, Canada and, the UK to battle Beijing with sanctions over key diplomats.
During this prepared statements for the testimony, Fed’s Powell signaled that the US economic recovery is far from complete and needs an incentive aid, with the Fed can give “as long as required”. On the other hand, Treasury Secretly Yellen sounds positive over the employment scenario while eyeing full employment in 2022 but also battles for easy money.
COVID-19 updates and vaccine jitters, coupled with the Chinese Claim of a Stronger economy, also try to offer an active session in Aia but all fails as traders await the US event, schedule for late Tuesday.
Although the easy money is almost ready to be backed, market players are more interested in hearing about the idea fears and odds of tapering to recall the bond bears. In the absence of which, sentiment can turn positive.