S&P 500 Futures defend bulls despite coronavirus concerns

• S&P 500 Futures seesaw around record top, sluggish of late.
• Covid conditions in Australia remain worrisome amid slow vaccinations, rejection to use AstraZeneca jabs.
• Fed’s Waller backed tapering, rate hike concerns despite citing a long way for employment recovery.
• US ADP Employment Change, risk catalysts become important for fresh impulse.

S&P 500 Futures stays defensive around the record top of 4,288.38, up 0.10% intraday, during early Wednesday. In doing so, the risk barometer portrays the market’s indecision amid the coronavirus (COVID-19) woes and comments from the Fed official ahead of the key precursor to Friday’s US Nonfarm Payrolls (NFP).

That said, Wall Street benchmarks refreshed all-time highs, except for DJI, the previous day after US data flashed upbeat signals. Also favoring the equity indices were subdued moves of the Treasury bonds.

Read: Wall Street Close: Bulls struggle as covid news battle upbeat data

It should, however, be noted that the worsening covid woes in Asia-Pacific, mainly in Australia, probe the market sentiment. Slower vaccinations risk the faster spread of the covid variants and hence the latest virus conditions in Australia, Indonesia, Taiwan and Thailand seem worrisome. Even so, Aussie policymakers from Queensland turn down the usage of the AstraZeneca vaccine over blood clotting issues. On the other hand, Reuters came out with the headlines suggesting Taiwan’s push for vaccines. “U.S. Commerce Secretary Gina Raimondo on Monday said she had spoken with the chief executive of Taiwan Semiconductor Manufacturing Co Ltd. and that he had asked for help getting access to COVID-19 vaccines,” the news reads.

On the other hand, Fed Governor Christopher Waller also probed the risk-on mood as he backed tapering concerns. Fed’s Waller said, in a Bloomberg TV interview, “Inflation expectations seem anchored,” while also signaling that inflation may remain above the Fed’s target for the next few moves.

Elsewhere, China’s official PMIs eased from the previous readings despite crossing the forecasts for June whereas Japan’s Industrial Production grew past market consensus and prior to 22.0% YoY in May.

Moving on, the covid updates and Fedspeak may entertain the markets, also EU data, but nothing all eyes will be on the US ADP Employment Change for June, expected 600K versus 978K prior, for clearer direction ahead of Friday’s US NFP.

Read: ADP Nonfarm Payrolls Preview: Going contrarian? How to trade this leading indicator