There was a bit of a glitch in the matrix overnight when shortly after 10pm ET, spoos suddenly hit an air pocket, sliding 0.2% lower on a spike in volume, although the move was nothing like the flash crash in gold one day earlier. However, a few hours later it’s as if nothing had happened as futures drifted higher and were back near all time highs as traders awaited fresh progress towards the passing of a much-anticipated infrastructure bill on Tuesday morning despite media concerns that the delta variant is straining some hospitals across Florida and Texas. At 715 a.m. ET, Dow e-minis were down 17 points, or 0.06%, S&P 500 e-minis were unchanged, and Nasdaq 100 e-minis were up 21.5 points, or 0.14%. Treasury yields were also unchanged while the dollar drifted higher.

The Senate has set a vote on passage of the $1 trillion bipartisan infrastructure bill for 11 a.m. ET, after which it would immediately begin to debate $3.5 trillion in additional investments. With new coronavirus cases rising steadily in the United States, progress on the infrastructure package is expected to help gauge fiscal support for the next leg of recovery in the world’s largest economy. The spread of the delta variant in corners of the world has raised concern the recovery from the pandemic will be derailed. New coronavirus cases in the U.S. surged to the highest weekly level since early February, while deaths increased the most since December. Nationwide, COVID-19 cases have averaged 100,000 for three days in a row, up 35% over the past week, according to Reuters.

Focus is also on inflation numbers due on Wednesday for hints about the path of Federal Reserve policy, after two Fed officials said on Monday that inflation was already at a level that could satisfy one leg of a key test for the beginning of rate hikes. “Investors are holding their breath before tomorrow’s U.S. inflation data,” said Swissquote analyst Ipek Ozkardeskaya.

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