S&P 500 FUTURES, US TREASURY BOND YIELDS DROP ON CHINA NEWS, US INFLATION, FED MINUTES IN FOCUS II

Friday’s mixed US employment report, despite firmer Nonfarm Payrolls (NFP), failed to resettle the market’s risk-on mood even if the Fed bets improved and now suggest a 0.25% rate hike in May. The reason could be linked to the market expectations suggesting a rate cut in late 2023, per the Fed Fund Futures.

Elsewhere, central bankers from Australia and Canada have recently announced a pause in their rate hikes and favored economic woes.

Amid these plays, S&P 500 Futures print mild losses around 4,132 while snapping a two-day uptrend whereas the US 10-year and two-year Treasury bond yields remain pressured near 3.37% and 3.95% respectively. In doing so, the benchmark bond coupons extend the previous day’s losses and portray the market’s rush toward the risk-safety amid economic slowdown fears.

It should be noted that the US Dollar Index (DXY) licks its wounds around a two-month low while the WTI crude oil rises to $80.80 by the press time. Further, Gold price slides below $2,000 as traders pare recent gains at the 13-month high.

Moving ahead, the Easter Monday holiday can restrict the market’s intraday moves. However, updates from the US Consumer Price Index (CPI) data and the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes will be crucial for near-term directions as riskier assets seem losing their charm. It’s worth mentioning that the start of earnings season will also be important for traders to watch amid recession woes.