Traders work on the floor of the New York Stock Exchange.
New York Stock Exchange
Stock futures rose late Sunday as investors awaited a widely expected interest rate cut from the Federal Reserve and a series of earnings reports from big tech companies.
S&P 500 Futures Contracts And Nasdaq 100 Futures were up about 0.7% and 0.9%, respectively. Futures contracts linked to Dow Jones Industrial Average added 290 points, or 0.6%.
Investors expect the Fed to cut rates at its Oct. 29 meeting, especially after the Bureau of Labor Statistics released colder-than-expected inflation data last week. Just over 96% of investors expect a sharp rate cut, between 375 and 400 basis points, while about 3% are betting on a cut between 400 and 425 basis points, according to the CME FedWatch tool.
Upcoming earnings reports from major tech companies are also available. Several “Magnificent 7” stocks, including Alphabet, Amazon, Apple, Meta Platforms and Microsoft, will publish their third quarter results this week. And if past third-quarter reports are any indication, companies could report better-than-expected financial results.
U.S. President Donald Trump and Chinese President Xi Jinping are set to meet in South Korea on Thursday to try to ease trade tensions, an event that could provide much clarity and reassure investors.
US Treasury Secretary Scott Bessent recently indicated that discussions between the leaders had been “constructive, thorough and wide-ranging”, which could move the negotiations forward.
A U.S.-China trade deal would be a boon for stocks of big tech companies, contributing to a broader market uptrend, according to Disruptive Technology analyst Dan Ives.
“It appears that a much broader trade framework/deal could be on the table this week between the United States and China, which would be a revolutionary moment for the technology sector and markets,” Ives said in a note to clients on Sunday.
Stocks are coming off a bullish week, with all three major indexes hitting record highs last Friday. The Dow Jones Industrial Average added about 1%, or 472.51 points, to 47,207.12 – its first-ever close above the 47,000 mark. The S&P 500 rose 0.79% to 6,791.69, while the Nasdaq Composite rose 1.15% to 23,204.87.
