S&P 500 Futures slip from five-week high above 3,500 as risk dwindles

• S&P 500 Futures snap four-day winning streak to ease from the early September high.
• US Treasury yields drop during the first day of week’s trading.
• Fears of delay in vaccine, US stimulus and Sino-American tussle could be cited as an immediate catalyst.

S&P 500 Futures mark 0.35% intraday loss while declining to 3,521 during Tuesday’s Asian session. The risk barometer recently witnessed downside pressure after US treasury trading resumed following the Columbus Day Holiday in American during the previous day.

Also read: S&P 500 Weekly Forecast: The tide could be about to go out ahead of the US Elections

At the day’s start, the US 10-year Treasury yields dropped two basis points (bps) to 0.75% whereas Japan’s Nikkei 225 also weakened amid fresh risk-off mood. The same moves helped the US dollar index (DXY) to snap a three-day losing streak with 0.10% gains.

While searching for the clues, traders may consider the latest halt in the coronavirus (COVID-19) vaccine trials by the Johnson and Johnson as the major catalysts. Also acting as trade negative factors could be the increasing odds of the US COVID-19 stimulus and fears that the virus will firm its grip in the world’s largest economy, as suggested by the US health official Dr. Anthony Fauci.

Furthermore, China’s dislike of the White House arms sale to Taiwan and the recent ban from Beijing to use Aussie coal for power stations offered additional challenges to the market sentiment.

On the contrary, US President Donald Trump’s negative status for the pandemic and his promise to deliver the vaccine soon probe the pessimism.

It should be noted that global traders are waiting for China’s September month trade numbers for fresh impulse after the initial reaction to the latest risk challenges. Also important on the calendar is the US Consumer Price Index (CPI) data for the previous month.

Read: US Consumer Price Index September Preview: A historical habit