S&P 500 Futures track Wall Street’s gains to recall 4,200 amid pre-NFP trading lull

• S&P 500 Futures stay firm around intraday top, rises for the second consecutive day.
• Vaccine optimism, no rate hike chatters and upbeat early signals for NFP back the bulls.
• Covid woes, China and cautious sentiment ahead of the key data tame risk-on mood.

S&P 500 Futures stay firmer around 4,200, up 0.16% intraday, during early Friday. In doing so, the risk barometer follows the US equities to the north to print a two-day uptrend amid a mostly quiet Asian session.

The Federal Reserve (Fed) policymakers’ rejection of the rate-hike fears, except for Dallas Fed President Robert Kaplan, seems the major push behind the latest market optimism. Also on the positive side could be the US and the European Union’s (EU) support to waive the coronavirus (COVID-19) vaccine patents.

It’s worth mentioning that the early signals for April employment figures for the US have been recently upbeat and hence traders stay hopeful of a strong jobs report from the world’s largest economy.

Read: US April Nonfarm Payrolls Preview: Leading indicators point to another strong NFP

Additionally, all three benchmark indices on Wall Street closed positive for the first in a week the previous day, which in turn offers extra fuel to the S&P 500 Futures.

Read: Wall Street Close: Bulls cheer upbeat data, risk-on mood with eyes on Nonfarm Payrolls

Meanwhile, US investment limits on Chinese companies and Beijing’s refrain from talking business to Australia weigh on the risk appetite. Also, Japan’s almost certain extension of the virus-led emergency and the global ire over China’s performance in Taiwan, Hong Kong and Xinjiang challenges the market mood.

Above all, caution ahead of the key US data and a light calendar restrict the market’s performance during early Friday. Ahead of the US data, trade numbers from China and Germany may offer intermediate moves while political headlines from the UK, the EU and the US, coupled with the covid updates, could also entertain investors.