S&P 500: Futures print mild gains below 3,200 after Wall Street’s stellar performance

• S&P 500 Futures probe 12-day top with eyes on February month peak.
• Hopes of further stimulus, upbeat global data favor equity bulls.
• Fears of the virus, trade/political tension compress the optimism.

S&P 500 Future rises to 3,177, up 0.15% on a day, as markets in Tokyo open for trading on Tuesday. The risk barometer surged to the highest since June 19 on Monday while marking around 1.6% gains on Wall Street. In doing so, the equity benchmark gets nearer to its record high surrounding 3,400 flashed during late-February.

Welcome prints of Chinese stocks triggered initial risk-on mood during the week’s start. The optimism also took clues from the expectations of further monetary/fiscal policy support from the key global economies as well as hopes of a virus vaccine. The mood got a boost during the US session when the ISM Non-Manufacturing PMI surged past-50.1 forecast to 57.1. On the contrary, US coronavirus (COVID-19) conditions join the EU-US trade tussle and the Sino-American tension to guard the upbeat sentiment.

Against this backdrop, Wall Street benchmarks marked on an average above 1.5% gains by the end of Monday’s US session. Among them, the Nasdaq refreshed the record top of 10,462.05 before settling around 10,433.65, up 2.21% on a day. Further, the S&P 500 also gained 1.59% to 3,179.72 during the first trading day of the week.

Also portraying the risk-on mood were the US 10-year Treasury yields that gained near two basis points (bps) to inch close to 0.70% mark. The coupon rate of the said bond seesaw around 0.68% by the press time.

Traders will have to look for closer details of the risk catalysts for immediate direction amid a lack of major data/events. Though, the RBA’s monetary policy meeting, Japan’s Leading Economic Index and German Industrial Production could offer intermediate moves.