Waiting on a Fiscal Stimulus Package Update

September 29, 2020 09:32 AM
Reduce risk ahead of tonight's presidential debate
Democrat's stimulus package now at $2.2 trillion
Chinese economic data out tonight
Equity Index futures

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Monday's Close

E-mini S&P 500 Futures (December): Settled at 3346, up 58.75

E-mini Nasdaq-100 Futures (December): Settled at 11,394.75, up 258.25

With tonight’s presidential debate in mind, U.S. benchmarks are peeling back from their overnight surge. With price action hovering around unchanged, we too think it’s smart to reduce risk ahead of tonight’s highly anticipated showdown between President Trump and Democrat candidate Joe Biden.

Bringing a tailwind yesterday to what had already become a path of least resistance higher Friday was a glimmer of hope that Congress could set aside their differences and agree on a new fiscal bill. House Democrats are presenting a watered-down $2.2 trillion package that will be voted on in the coming days. The White House has said it could support a package as large as $1.5 trillion and the markets are eagerly awaiting comments from Treasury Secretary Steven Mnuchin today as well as the topic being discussed tonight.

There is a deluge of Fed speakers on today’s schedule for the New York Fed’s Treasury Conference. First up was New York Fed President John Williams at 8:15 a.m. CT, who was followed by Philadelphia Fed President Patrick Harker at 8:30. Fed Vice Chair Richard Clarida and Fed Governor Randal Quarles will also be on tap throughout the day. Consumer Confidence was at 9:00 a.m. CT. We then look to Chinese Manufacturing tonight; the first read is at 8:00 p.m. CT followed by HSBC Caixin at 8:45 p.m. CT.

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