US pre-open: Futures mixed as new Covid cases decline in the States

Wall Street futures were pointing to a mixed open ahead of the bell on Monday as new Covid-19 cases continued to decline across the US.

As of 1235 BST, Dow Jones futures were up 0.18%, while S&P 500 futures were down 0.09% and Nasdaq-100 futures were 0.57% lower.

The Dow closed 33.18 points higher on Friday as a week full of fears linked to the debt crisis of Chinese real estate giant Evergrande and the Federal Reserve's signalling of a rollback in monetary stimulus drew to close on a somewhat positive note.

Turning to the new week, reopening plays were in the green prior to the open as US Covid cases continued to fall, with 114,000 new cases, on average, over the seven days ended 24 September, down from a seven-day average of roughly 160,000 cases at the peak of the latest wave, according to the Centers for Disease Control and Prevention.

Going the other way, tech stocks were trading lower as a result of investors rotating out of higher valuation shares amid an increase in yields as the benchmark 10-year Treasury note hit 1.49%, its highest point since June.

Market participants will also have a keen eye focussed on Washington, with fears of a possible government shutdown as lawmakers attempt to agree on a budget, the potential for the US' first debt default, and a likely delay to the vote on Joe Biden's $1.0trn bipartisan economic bill.

IG's Chris Beauchamp said: "The new week has started in a very different fashion to the last one, indices having staged an impressive recovery from last Tuesday's lows. China worries seem to have evaporated, or at least have dimmed in importance, and with the US once again talking about an infrastructure bill we seem to have a welcome return to some of the old themes that proved so fruitful for equity markets in the first half of the year.

"US futures point towards a better start to the week too, as the clouds that dogged markets last week disappear to be replaced by a new wave of optimism."

On the macro front, August durable goods orders will be published at 1330 BST and the Dallas Fed's September manufacturing index will follow at 1530 BST.

Federal Reserve Bank of Chicago head Charles Evans will deliver a speech at 1300 BST, while New York Fed president John Williams and board of governors member Lael Brainard will also deliver comments at 1700 BST and 1750 BST, respectively.

No major corporate earnings were slated for release on Monday.