S&P 500 Futures rise to fresh record top near 4,200 as Biden urges US Congress for stimulus

  • S&P 500 Futures take the bids near record high.
  • US President Biden pushes for tax hike, sounds tough on China and Russia.
  • Wall Street closed with mild losses as Fed refrained from tapering talks.
  • US Q1 GDP, China’s response to Biden and covid headlines will be the key.

S&P 500 Futures refresh record top near 4,200, up 0.55% intraday, during early Thursday. The risk barometer recently picks up bids as US President Joe Biden addressed the Joint Congress for the first time after taking the office.

Although the major part of Biden’s speech pushed policymakers to back his relief packages, totaling somewhere near $4.0 trillion, the US leader surprised markets by sounding tough on China and Russia. In doing so, Biden told China President Xi Jinping that the American military will maintain a strong presence in Indo-Pacific while also warning Russian President Vladimir Putin of the consequences.

Read: Joe Biden address to Congress is promoting a $1.8 trillion spending package

It’s worth mentioning that the US Federal Reserve’s (Fed) refrain from discussing the tapering of its bond-buying programs, forget about a rate hike, also favored the risk-on mood.

Furthermore, chatters surrounding China seeking stronger ties in South Asia and the UK’s formal recognition to the European Union (EU) ambassador for the first time after Brexit back the market optimism amid a light calendar in Asia and off in Japan.

Amid these plays, stocks in Asia-Pacific print mild gains while the US 10-year Treasury yields stay depressed around 1.51% by the press time.

Moving on, investors will keep their eyes on Russia and China as they respond to Biden. Also important will be the coronavirus (COVID-19) updates and vaccine news. On the calendar, the preliminary forecasts of US Q1 GDP, expected 6.5% versus 4.3% prior, becomes the key.

Read: US Q1 GDP Preview: Eyes on inflation and FOMC as economic recovery gathers steam

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