S&P 500 Futures nurse the biggest loss in 12 weeks below 3,450

• S&P 500 Futures remain on the back foot around an eight day low.
• Markets fear further escalation in the Sino-American tension, divert funds to cheer the US dollar gains from 28-month low.
• US NFP, stimulus headlines will join other risk catalysts to entertain momentum traders.

S&P 500 Futures takes rounds to 3,445, down 0.50% on a day, during the initial hour of Friday’s Tokyo open. The risk barometer refreshed the record top of 3,587 on Wednesday before marking the heaviest losses since the early June while dropping to 3,431.62 by the end of Thursday.

Although market players blame tech-rout as the force behind the recent bears’ attack, the US-China tussle is the root of portraying the sea of red in American technology companies and Wall Street as well. Bloomberg came out with the news blaming China’s preparations to lessen the reliance on America for technology while reasoning the previous day declines in global equities that wiped off $100 billion. It’s worth mentioning that the dragon nation’s move was in reaction to the US sanctions over Beijing’s diplomats.

While the US equities were bleed red, the US dollar index (DXY) portrayed the stellar run-up to probe the monthly resistance line amid mildly positive data and hopes that the policymakers will soon end the stimulus deadlock. Recently, US House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin agreed for stop-gap funding to keep the government offices open even after the current bill expires on September 30.

Amid all these catalysts, the US 10-year Treasury yields gain 1.4 basis points (bps) to 0.636% whereas Japan’s Nikkei 225 and Australia’s ASX 200 mark 1.20% and 2.20% losses respectively.

Although the US-China tension and stimulus headlines may offer intermediate clues, not to forget around the coronavirus (COVID-19) updates, major attention will be given to the August month’s employment data from America. Forecasts suggest a mild weakness in the headline Nonfarm Payrolls (NFP) and Unemployment Rate.

Read: Nonfarm Payrolls Preview: Fed’s policy shift to introduce vital noise