Traders work on the floor of the New York Stock Exchange.
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Stock futures rose Sunday evening as investors looked ahead to a widely anticipated rate cut by the Federal Reserve and a slew of earnings releases from Big Tech companies.
S&P500 futures and Nasdaq 100 futures They rose about 0.7% and 0.9%, respectively. futures tied to Dow Jones Industrial Average Added 290 points (0.6%).
Investors expect the Fed to cut interest rates at its Oct. 29 meeting, especially after the Bureau of Labor Statistics released lower-than-expected inflation data last week. More than 96% of investors expect a sharp cut to 375-400 basis points, and about 3% are betting on a cut to 400-425 basis points, according to the CME FedWatch tool.
Big tech companies’ future earnings reports are also attracting attention. Several “Magnificent 7” stocks, including Alphabet, Amazon, Apple, Metaplatform, and Microsoft, will announce their third-quarter results this week. And if early third-quarter reports are any indication, both companies could report stronger-than-expected financial results.
US President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea on Thursday in a bid to ease trade tensions, a move that could bring greater transparency and reassurance to investors.
U.S. Treasury Secretary Scott Bessent recently said talks between the leaders were “constructive, far-reaching and thorough” and suggested the needle could move.
A U.S.-China trade deal would be a boon for Big Tech stocks and contribute to the market’s broader bull run, according to Disruptive Technologies analyst Dan Ives.
“A broader trade framework/agreement could be discussed between the US and China this week, which would be a major landmark moment for the technology sector and markets,” Ives said in a note to clients on Sunday.
Stocks are coming off a strong week, with all three major indexes hitting record highs last Friday. The Dow Jones Industrial Average rose about 1% (472.51 points) to 47,207.12, marking the first time it has closed above 47,000 points. The S&P 500 rose 0.79% to 6,791.69 and the Nasdaq Composite Index rose 1.15% to 23,204.87.
