S&P 500 Futures pick-up bids from intraday low around 4,161 to trim the day’s losses to 0.20% while flashing 4,168 as a quote during early Monday.
In doing so, the risk barometer takes clues from chatters surrounding US President Joe Biden’s $2.25 trillion infrastructure spending as well as the coronavirus (COVID-19) infection fears, mainly emanating from Europe and Asia.
US Republicans recently reiterate their dislike for President Biden’s tax hike while showing readiness to asset the infrastructure spending if the Democratic Party member steps back on the outlays. Unconfirmed rumors also swirled that Biden is up for stepping back tax proposal of 28% to 24%.
Elsewhere, the global covid death toll jumped past three million, per Bloomberg, as the pandemic’s resurgence in Europe, India and some other Asian nations like the Philippines highlight the COVID-19 fears. Furthermore, the US-China and the Washington-Kremlin tussles add to the risk-off mood.
However, pessimists are questioned over the upbeat US data and faster vaccinations in the US and the UK, as well as the opening up of the trans-Tasman travel bubble.
Given the lack of major data/events, except for Canada’s annual budget and Japanese Industrial Production for February, market players need to pay attention to the risk headlines for fresh impulse.