United States stock futures climbed on Sunday evening (Monday AEDT) as investors positioned for a week dominated by central bank policy and major corporate earnings, with optimism building around a widely expected Federal Reserve rate cut and a potential thaw in U.S.-China trade relations.
By 10:20 am AEDT (11:20 pm GMT) Dow futures, S&P 500 futures and Nasdaq 100 futures gained 0.6%, 0.7%, and 0.8%, respectively.
The market’s focus remains on the Federal Reserve’s policy meeting on 29 October, where traders are almost unanimously anticipating a rate reduction.
According to the CME Group FedWatch Tool, 96.7% of investors expect the Fed to cut rates deeply to between 375 and 400 basis points, following softer-than-expected inflation data released by the Bureau of Labor Statistics last week.
Investors are also bracing for a flood of third-quarter earnings from the “Magnificent Seven”, including Alphabet, Amazon, Apple, Meta Platforms, and Microsoft, which are expected to report throughout the week.
Meanwhile, geopolitics remain in play this week as U.S. President Donald Trump and Chinese President Xi Jinping prepare to meet in South Korea on Thursday in a bid to reduce trade tensions.
U.S. Treasury Secretary Scott Bessent described recent talks between the two nations as “constructive, far-reaching, and in-depth,” hinting that progress may be within reach.
All three major U.S. indices ended last week at record highs. The Dow Jones Industrial Average advanced 472.5 points, or 1%, to close at 47,207.1, its first-ever finish above 47,000. The S&P 500 gained 0.8% to 6,791.7, while the Nasdaq Composite rose 1.15% to 23,204.9.
