S&P 500 Futures step back from record top as US T-bond yields pause declines

• S&P 500 Futures print mild losses surrounding the all-time high.
• Covid woes, Fedspeak trouble traders amid a light calendar.
• US Treasury yields consolidate the heaviest daily losses in over a week.

S&P 500 Futures ease from the record top of 4,281.88, down 0.15% intraday around 4,274, during early Tuesday. In doing so, the risk barometer justifies the halt in US Treasury yields’ downside amid mixed concerns over the coronavirus (COVID-19) and the US inflation, not to forget chatters over infrastructure spending from US President Joe Biden.

While Wellington is up for lowering the covid alert after witnessing a sustained absence of the new virus cases, pandemic conditions seem to worsen in Australia. “New limits also come into play in parts of Queensland today, with South Australia and the ACT also reintroducing some limits to manage the threat of the Delta COVID-19 strain,” said ABC news.  Elsewhere, the UK registered the highest infections since January 30 on Monday.

The Fed policymakers’ indecision over the inflation woes and resulted pressure on the US central bank also weigh on the market sentiment. Furthermore, US President Biden’s push for strong spending and Senate Republican Major Mitch McConnell’s efforts to tame the Democratic demands add to the traders’ confusion and weigh on the sentiment.

It’s worth mentioning that an absence of major data/events and the quarter-end positioning, not to forget the pre-NFP caution, also play their part to induce market mood.

That said, the US 10-year Treasury yield seesaws around 1.48% after declining the most since June 18 whereas stocks in Asia-Pacific print mild losses by the press time.

Given the lack of major data/events ahead of Friday’s US NFP, markets are likely to remain sluggish. However, China PMI and Fedspeak may offer intermediate moves.

Also read: Wall Street Close: Dow probes bulls, S&P 500, Nasdaq refresh record tops on mixed concerns