S&P 500 Futures seesaw around near record top below 4,300 on mixed clues

• S&P 500 Futures refresh intraday low but stay near all-time high.
• Covid headlines from the UK, Australia tests market sentiment.
• US Core PCE Inflation questions Fed’s reflation analysis, backs policy adjustment fears.

S&P 500 Futures print daily low of 4,272.62 while trimming the early Asian gains to 0.03% on Monday. The risk barometer stayed subdued after refreshing the record top on Friday, before recently easing.

The corrective pullback of the US 10-year Treasury yields, around 1.53% by the press time, could be linked to the latest weakness of the S&P 500 Futures. However, the equity derivative seems to ignore the downbeat headlines corning the coronavirus (COVID-19) and the US inflation fears while staying around the record high.

Aussie Treasurer Josh Frydenberg recently said, per Reuters, “Australia will only open borders if it is safe.” The Oz nation recently expanded covid-led activity restrictions in Sydney amid a jump in the daily infections and variant count.

The UK is also struggling with the covid strain and its Health Minister recently resigned over breaching the activity restriction measures frame by himself. The British virus conditions have already pushed back the UK’s unlock deadline and German Chancellor Angela Merkel is up for banking the British travelers to the bloc, due to fears of covid strain infections.

It’s worth noting that the global markets closed mixed on Friday as comments from the Fed policymakers contrast strong US inflation data.

US Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred gauge o Inflation, jumped to the highest in the near three decades with 3.4% YoY figures in May. That being said, Minneapolis Federal Reserve President Neel Kashkari said, “Expecting to see some of the very high inflation readings to return down to normal." On the contrary, Boston Federal Reserve President Eric Rosengren said on Friday that they have to think about some of the side effects of a low-for-long interest rate strategy, as reported by Reuters.

Considering a lack of major data and fresh challenges to the US Fed’s current monetary policy, market players will keep their eyes on the macro headlines ahead of Friday’s US NFP for fresh impulse.