S&P 500 Futures remain sluggish amid a quiet Asian session, Fed in focus

• S&P 500 Futures test two-day run-up near record top.
• Uncertainty over US infrastructure spending, covid joins the pre-Fed trading lull.

S&P 500 Futures fail to extend the previous two-day upside while struggling near 4,180 during early Tuesday. In doing so, the risk barometer portrays the typical market moves ahead of the US Federal Reserve’s (Fed) monetary policy meeting. Also testing the moves could be mixed concerning the coronavirus (COVID-19) and vaccinations.

With the markets gearing up for the Fed, traders are divided after the Bank of Canada’s (BOC) surprise tapering and recently upbeat fundamentals.

Read: Wall Street Close: Challenges to stimulus, Tesla earnings offer mixed start to the key week

Elsewhere, an expected shift in the US Republicans’ power, mainly due to the latest consensus report, as well as growing dislike for US President Joe Biden’s tax hike plans among the American businesses raises doubts over the much-awaited infrastructure spending. Also challenging the aid package could be US President Biden’s likely refrain from stepping down on tax hike demand, as conveyed by the Axios.

On a different page, mounting covid woes in India and Japan renew concerns over the health of the global economy even as the West offers multiple helps to New Delhi as it combats the virus.

Alternatively, faster vaccinations in the West and the early signals of moving away from the virus-led activity restrictions are keeping the investors hopeful.

Other than the mixed catalysts, an absence of upbeat performance by the US Durable Goods Orders for March, up 0.5% versus 2.5% forecast, also weighs on the risk-on mood.

Looking forward, traders may keep searching for fresh directives and may end up following the covid and stimulus news ahead of the Fed’s decision. Meanwhile, second-tier data from the US can offer intraday moves.

Read: Fed to taper bond buying in Q4 2021 – Bloomberg survey