US Equity Futures Unchanged Since Yesterday’s Ranging Market

US Equity Futures Unchanged Since Yesterday’s Ranging Market

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Key Takeaways:

• News related to the stimulus talks and US economic data cause volatility across Futures market
• Rising COVID-19 cases cause uncertainty in the stock market

Stimulus Negotiations & Economic Data

Futures in the US are pretty much unchanged relative to yesterday’s closing prices as the market finished a highly volatile Thursday session. The Dow Jones was down to a low of 28,154 and was able to erase the intraday losses and reach a close of 28,494 points. At the same time, the S&P 500 traded at a low of 3,440, later recovering to a finish of 3.483 points while the Nasdaq Composite ended the session 0.47% lower at 11,713 points.

The aggressive volatility was caused by quick to spread news related to the stimulus talks and US economic data. The market reacted sharply to the downside at the release of the initial jobless claims which announced the filing of 898K new applications compared to expected 825K and a prior of 845K. Adding to the selling pressure, the US Treasury Secretary Steven Mnuchin emphasized in an interview that the task of reaching a stimulus package deal will be difficult in such a short time ahead of the election.

In all the confusion, the stock market somehow found a way to climb higher and bounce back from session lows. Futures are flashing some green ahead of the opening on Friday while investors are hopeful to hear positive news regarding a possible fiscal stimulus before the election.

COVID-19 Continues to Cause Havok

The uncertainty in the stock market seems to be growing amid an increasing number of COVID-19 confirmed cases and the upcoming US election in less than three weeks on Nov 3. President Trump needs to find a way to strike a deal with House Speaker Nancy Pelosi, which as of yet, seems far from happening as House Speaker has demanded $2.2T, while Trump is offering $1.8T. On top of that, the latest job figures show a slowdown in the economic recovery, which additionally disturbs investors’ risk-on sentiment.

The US dollar is showing signs of strengthening this week as the EUR/USD is keeping firm at 1.1700 to 1.1715 in a calm trading session. The weekly high for the pair was registered on Monday at 1.1826. It’s worth noting that US data is expected later today, Core Retails Sales and Retail Sales which can play a role in the movement of the Greenback.