S&P 500 Futures drops following the latest risk reset

• S&P 500 Futures down 0.60%, 17.00 points, amid the latest shift in risk-tone.
• Doubts over the US economic re-open gain momentum after the virus figures.
• UK PM Johnson’s cautious approach, shooting in Canada add burden onto the risk-tone.

S&P 500 Futures portray the return of skepticism, after Friday’s risk-on, during the early Asian session on Monday. The US equity futures decline 0.60% to 2,852 by the press time.

The Trump administration’s guidelines to re-open the US economy in a phased manner, coupled with promising results of the Gilead’s Remdesivir clinical trials, offered positive trade sentiment on Friday.

However, the weekend report from Reuters mentions that the US death toll due to the coronavirus (COVID-19) crossed 40,000 with over 744,000 infections.

Further weighing on the risk could be the report from The Times that suggests UK PM Boris Johnson being very cautious about re-opening the economy, in contrast to the Chancellor Rishi Sunak.

Additionally, mass shootings in Canada, killing at least 10 people including gunmen, as per the Washington Post, also exert downside pressure on the market’s risk-tone.

While also portraying the trading sentiment, the US 10-year Treasury yields drop 1.3 basis points (bps) to 0.643% by the press time.

Moving on, traders will keep eyes on the virus updates from the US as President Donald Trump recently expects the answer on the deal on additional stimulus. Moreover, Vice President Mike Pence is also likely to talk with state governors and might offer additional details concerning the economic restart.