S&P 500 Future track Wall Street gains to refresh record top, ignore US Treasury yields

• S&P 500 Futures print 10-day uptrend to new all-time high.
• US Treasury yields rebound after two-day downside, DXY extends recovery from monthly low.
• Sluggish session awaits US second-tier data ahead of the key Q3 GDP.

S&P 500 Futures portrays equity traders’ optimism, refreshing all-time high to 4,570, up 0.30% intraday, during early Tuesday. In doing so, the US stock futures follow Wall Street’s upbeat performance, also paying a little heed to the US Treasury yields’ latest consolidation.

US equities extend Friday’s upbeat performance, backed by sentiment-positive news from Tesla to kick-start the heavy reporting week. On the contrary, the US 10-year Treasury yields snap two-day downturn near 1.64% at the latest.

The optimism of the equity traders, ahead of the big reporting week, takes clues from the hopes of US stimulus backed by comments from US President Joe Biden and House Speaker Nancy Pelosi. However, the hawkish Fedspeak and a blackout period preceding the advance estimation of US Q3 GDP probe the optimists of late.

Amid these plays, the US Dollar Index (DXY) keeps the previous day’s advances, up 0.06% on a day near 93.90 by the press time, taking clues from the firmer US Treasury yields.

It’s worth observing that a phone call between China’s Vice Premier Liu He and US Treasury Secretary Janet Yellen also keeps the buyers hopeful in Asia-Pacific. On the same line are the efforts of the People’s Bank of China (PBOC) to defend the monetary system from Evergrande like risks, as well as globally receding covid fears.

Although equity earning and stock-specific news can keep investors hopeful, cautious sentiment ahead of Thursday’s US GDP may challenge the bulls. For now, second-tier releases like US Consumer Confidence and Durable Goods Orders may entertain gold traders. On the qualitative side, US Treasury yields and headlines from China, as well as relating to the US stimulus, will be important to watch for fresh impulse.

Read: Wall Street Close: Stocks cheer risk-on mood, Tesla propels S&P 500 to fresh record top