S&P 500 Futures hold 3,600, print mild losses amid vaccine hopes, virus woes
- S&P 500 Futures ease from one week high as COVID-19 resurgence trouble US states.
- Austria kick-stars three-week national lockdown, Iowa Governor makes masks mandatory.
- Johnson and Johnson begins late-stage trials for a two-dose vaccine after Moderna’s 94.5% effective update.
S&P 500 Futures bulls catch a breather around 3,620, down 0.10% intraday, amid the initial hour of Tokyo open. In doing so, the risk barometer steps back from the highest since November 09 flashed the previous day after Moderna boosted coronavirus (COVID-19) vaccine hopes.
Read: Wall Street Close: Economic recovery sentiment sends US stocks to new highs
Having earlier heard from Moderna that its vaccine trial offers a higher effective rate than Pfizer-BioNTech, coupled with offering the flexibility in distribution, Johnson and Johnson (J&J) also crossed wires, via AP News. As per the latest vaccine update, J&J is up for a two-dose vaccine and begins the late-stage trials.
While vaccine hopes offered a positive closing to Wall Street on Monday, the mood sours early on Tuesday as the COVID-19 update has been worrisome off-late.
Austria’s three-week national lockdown and compulsory masks for everyone above the age of two years in Iowa are the latest news for the covid. Earlier, the Fed Vice Chair Richard Clarida conveyed economic optimism, backed by the vaccine hopes, whereas the New York Times (NYT) signaled that US President Donald Trump sought options for attacking Iran to stop its growing nuclear program. It should be noted that UK Brexit Minister David Frost’s optimism to have a trade deal with the European Union (EU) contributed positively to the market’s sentiment.
Amid these plays, Japan’s Nikkei 225 and Australia’s ASX 200 print gains below 0.50% whereas New Zealand’s NZX 50 drops around 0.10% by press time.
Looking forward, global traders will keep eyes on the vaccine developments and the virus updates for fresh impulse. Further, US Retail Sales for October will decorate today’s calendar.
Read: US Retail Sales October Preview: Will curfews bring down consumer spending?