S&P 500 Futures extend pullback from record top amid quiet session

• S&P 500 Futures print mild losses after snapping eight-day uptrend.
• Virus concerns, doubts over economic recovery and cautious mood ahead of week’s key events weigh on the sentiment.
• FOMC Meeting Minutes will be crucial for short-term direction, covid updates shouldn’t be undermined as well.

S&P 500 Futures remain depressed around 4,335, down 0.08% intraday, during early Wednesday. The risk barometer took a U-turn from the all-time high the previous day, also breaking the eight-day-old uptrend, amid sour market sentiment. It should, however, be noted that a lack of major data/events portrays a sluggish mood of late.

US traders couldn’t get a warm welcome from the markets as downbeat ISM Services PMI, 60.1 versus 63.5 expected and 64.0 prior, probed the risk appetite. The data join Friday’s mixed employment report for June and magnify concerns over the Fed’s next moves.

In addition to the doubts over the US economic recovery and uncertainty over the monetary policy adjustments, the coronavirus (COVID-19) resurgence in the Asia-Pacific region and the outbreak of various variants that do resist vaccines also weigh on the sentiment. Recent chatters highlight Epsilon and Lambda as the key challenges to the economic unlock in the West.

The risk-off mood underpins the US dollar index (DXY) but can’t save Treasury yields from recording the heaviest losses since late February. Additionally, stocks in Asia-Pacific are also offered by the press time.

Despite a boring start to Wednesday, the existence of the Federal Open Market Committee (FOMC) Meeting Minutes will entertain the traders going forward. Although the minutes are less likely to offer any clues of the tapering and rate hikes, traders will be interested in reading the divide among the policymakers to keep the optimism surrounding the Fed’s future action. The same should help the DXY to remain firm but may negatively impact the equities and commodities.

Read: Wall Street Close: Mixed performance as downbeat Treasury yields save Nasdaq