S&P 500: Futures trying to heal the pain of Wall Street traders despite a little hope

• S&P 500 Futures gain 0.50%, or 15 points, to 3,025, Dow Futures recover 150 points to 25,310.
• Calls of virus vaccine from China seem to favor the recent risk reset amid a light calendar.
• Negative Fed rate expectations are back in motion after the gloomy Thursday.

S&P 500 Futures are up 0.50% to 3,025 amid the early Friday morning in Asia. The futures of the key US equity benchmark seems to consolidate the main index fall of over 5.5% backed by Thursday’s risk-off mood. Even so, the bears are still lurking around as neither technical nor fundamentals portray any major market optimism.

Not only S&P 500 Future, Dow Jones 30 Futures and the US 10-year treasury yields also portray the risk reset while stepping back from the previous day’s heavy downside.

Read: Wall Street Close: Second wave fears send benchmarks plummeting

Looking at the fundamentals, calls of successful animal trials of the probable coronavirus (COVID-19) drug in China become positive to favor the U-turn in risk barometers. Additionally, increasing calls of the Fed’s negative rate suggest the US central bank’s readiness to pump the markets and offer a distant clue behind the latest shift in the mood.

On the contrary, the US-China tension regains support whereas North Korea and Turkey are the latest to have a spat with America. These challenges to the risk-tone sentiment can offer key moves while the calendar lacks any key data/events, like now.

As a result, traders may keep eyes on the headlines ahead of the US Michigan Consumer Sentiment and a bit of Fedspeak scheduled during the later part of the day.

Technical analysis

FXStreet’s Ross J Burland already anticipated the equity gauge’s fall when it was just below 3,200 while citing calls of further declines toward the 2,950 support level.

Read: S&P 500: Futures heading to test a critical daily candle, if it breaks, a 61.8% retracement will be earmarked, and much more