FAST FIVE: Futures Slide On Doubt Biden Can Pass $1.9 Trillion Stimulus; Reflation Trade Fizzles
“It is unlikely going to get any better soon, given the currently slow rate of vaccine rollouts.” Biden's comments came after Federal Reserve Chair Jerome Powell struck a dovish tone in comments at a virtual symposium with Princeton University.
Earlier on Friday, an Asian regional stock benchmarks slipped, weighted down by Chinese smartphone maker Xiaomi after the Trump Administration blacklisted the firm and 10 other companies.
The details of the USD 1.9tln rescue plan had been flagged beforehand which included a boost in stimulus payments to USD 2,000 and called for a USD 15/hour national minimum wage, while the recovery plan will be unveiled next month and he added the vaccination target is for 100mln shots in the first 100 days of his term.
Meanwhile, base metals prices pull back amid the market tone, firmer Buck and US-China tensions, with LME copper below USD 8,000/t after reaching a weekly high of USD 8,115/t.
Even as investors took in the promise from Powell for the Fed to be on the accommodative side for longer and Biden's big fiscal opening salvo, large cap US equities dropped slightly with the Dow Jones (-0.22%), the S&P 500 (-0.38%) and the NASDAQ (-0.12%) all closing just shy of their record levels.