S&P 500 Futures drop over 1.0%, off two-month top, amid trade war fears


  • S&P Futures drops as US-China trade war fears join coronavirus worries.
  • Downbeat US data, a lack of virus cure and no strong sign of economy restart add to the risk-off sentiment.
  • Second-tier US data will decorate the economic calendar, qualitative catalysts remain as the major drivers.

While stepping back from the highest since March 06, S&P 500 Futures drop 30 points to 3,872, down 1.10% on a day, during the Asian session on Friday.

The Futures linked to the US equity benchmark suggest the risk-off is gaining momentum after US President Donald Trump renewed US-China trade war fears. The Republican leader earlier mentioned that the US trade deal with China has been “upset very badly” by the coronavirus while his latest threats to use tariffs were harsh on the trade sentiment.

Also weighing on the market’s risk-tone could be NIKKEI forecast suggesting Japan’s GDP to recall World War II levels as well as signs of lockdown extension from the Asian nation.

Earlier, the ECB failed to take a bold move despite showing concerns over the coronavirus (COVID-19) carnage. On the economic front, Eurozone GDP and the US Jobless Claims, together with the Chicago Fed Manufacturing Index, flashed downbeat figures and added strength to the risk aversion. It’s worth mentioning that Wall Street benchmarks closed the April month on a negative side with near 1.0% losses on Thursday.

Amid all these plays, US 10-year Treasury yields seesaw around 0.63% whereas Japan’s NIKKEI begins the day with over 1.30% loss while declining below 19,900.

Given the fresh trade-war fears adding to the market’s worries, a light economic calendar in Asia will keep news/updates on the virus/trade on the driver’s seat.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends recovery toward 1.0800 as USD retreats ahead of Fed

EUR/USD extends recovery toward 1.0800 as USD retreats ahead of Fed

EUR/USD continues to push higher toward 1.0800 on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trump win-inspired USD longs ahead of the Federal Reserve's highly-anticipated policy announcements.

EUR/USD News
GBP/USD rebounds above 1.2950 after BoE policy announcements

GBP/USD rebounds above 1.2950 after BoE policy announcements

GBP/USD trades in positive territory above 1.2950 on Thursday. The Bank of England (BoE) lowered the policy rate by 25 basis points as expected but the upward revision to inflation projections helped the pair edge higher. Market focus now shifts to the Fed's policy decisions.

GBP/USD News
Gold rebounds above $2,680, awaits Fed rate decision

Gold rebounds above $2,680, awaits Fed rate decision

Gold recovers following Wednesday's sharp decline and trades above $2,680. The benchmark 10-year US Treasury bond yield edges lower after Trump-inspired upsurge, allowing XAU/USD to hold its ground ahead of the Fed policy decisions.

Gold News
Federal Reserve expected to deliver 25 bps interest-rate cut, shrugging off Trump victory

Federal Reserve expected to deliver 25 bps interest-rate cut, shrugging off Trump victory

The Federal Reserve is widely expected to lower the policy rate after Donald Trump won the US presidential election. Fed Chairman Powell’s remarks could provide important clues about the rate outlook.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures