S&P 500 Futures print mild losses below 3,400 amid the pre-Fed trading lull

• S&P 500 Futures struggle to extend the two-day rise amid mixed clues.
• Trade war fears join a light calendar to challenge the market’s previous optimism.
• Coronavirus case numbers jump in Texas but vaccine hopes dim the pandemic woes.
• Fed is widely expected to keep the monetary policy unchanged, quarterly economic forecast will be the key.

S&P 500 Futures tread water around 3,390, down 0.10% intraday, during early Wednesday. In doing so, the risk barometer snaps the last two days’ run-up ahead of the US Federal Reserve (Fed) announcements.

Other than the traders’ generally followed pre-event cautious sentiment, a light calendar and mostly dead news feeds also add to the market’s lack of activity.

Even so, recent trade jitters between the US and Canada, surrounding the American aluminum tariffs, join the coronavirus (COVID-19) news to offer intermediate moves.

Following its open threat to any further aluminum tariffs from the US, Ottawa extended the border restrictions with America by a month to October 21.

Also on the trade side could be the World Trade Organization’s (WTO) verdict terming the US sanctions on China as against international law.

Elsewhere, Texas registered the biggest jump in daily cases with 4,816 addition for Tuesday. Though hopes of finding the cure to the pandemic, backed by the latest research at the University of Pittsburgh School Of Medicine, conquer the virus woes.

Looking at the calendar, New Zealand’s Current Account data for the second quarter flashed upbeat signs and so does Japan’s August month Merchandise Trade Balance Total. Further, Australia’s Westpac Leading Index grew past-0.06% prior readings to 0.48% in the previous month.

Moving on, traders will pay a little heed to the second-tier economics, if any, ahead of the US Fed’s monetary policy announcements. Though, the UK Consumer Price Index and Retail Sales from American may offer intermediate moves. It should, additionally, be noted that the risk catalysts may gain upside momentum should the Fed chooses to sound optimistic.

Read: September FOMC Preview: Projections, projections, projections