S&P 500 Futures wobble around record top amid sluggish session

• S&P 500 Futures struggles to track Wall Street benchmark on mixed catalysts.
• US 10-year Treasury yields drop for the third day to refresh one-week low.
• Virus numbers ease but China PMIs renew economic fears.
• US NFP will be the key data after cautiously optimistic Powell.

S&P 500 Futures remain sidelined around the all-time high above 4,500, up 0.05% near 4,527 during early Tuesday. The easing in covid infections helps the risk barometer to stay positive amid a lackluster session. However, economic fears emanating from China and geopolitical woes from the Middle East join the pre-NFP anxiety to challenge the optimists.

Not only a step back of the Aussie infections from all-time high flashed the previous day but the drop in the UK’s daily covid numbers to the two-week low also keep buyers hopeful.

Also positive for the equities were recently downbeat data from the US and China. While the US housing market figures and Dallas Fed Manufacturing gauge dropped the previous day, China’s official activity numbers highlight the need for the easy money policy by the press time.

Elsewhere, the total return of the US troops from Afghanistan and the Sino-American tussles try to probe the bulls. Additionally, the market’s cautious mood ahead of this week’s US Nonfarm Payrolls (NFP) adds to the trading filters.

It’s worth noting that Wall Street closed mixed on Monday with S&P 500 and Nasdaq refreshing record highs but Dow Jones marked mild losses on a day.

Read: Wall Street Close: S&P 500, Nasdaq refresh record top, Dow prints mild losses

That said, the US 10-year Treasury yields drop for the third consecutive day to refresh weekly low whereas the US Dollar Index (DXY) fails to keep the previous day’s rebound from a two-week low amid a sluggish session.

Moving on, second-tier data/events from the US can entertain investors but major attention will be given to Friday’s jobs report after Fed Chair Jerome Powell struck cautiously optimistic comments at the Jackson Hole Symposium.

Read: Week ahead: US jobs, OPEC and Zoom earnings [Video]