U.S. stock futures climbed on Sunday evening, extending last week’s rally, as investors cheered growing expectations of a Federal Reserve rate cut and encouraging signs of progress in U.S.-China trade negotiations.
S&P 500 Futures rose 0.7% to 6,873.75 points, while Nasdaq 100 Futures jumped 0.9% to 25,726.75 points by 19:54 ET (23:54 GMT). Dow Jones Futures traded 0.6% highet at 47,676.0 points.
Fed meeting looms; US-China trade talks progress All three major U.S. indexes -- the Dow Jones Industrial Average, the S&P 500, and the NASDAQ Composite -- closed at new all-time highs on Friday, with the Dow climbing 1%, the S&P gaining 0.8% and the Nasdaq advancing 1.2%.
Investor sentiment strengthened after data last week showed that U.S. consumer prices cooled more than expected in September, reinforcing bets that the Fed will cut rates at its two-day policy meeting concluding on Oct. 29.
The softer inflation print cemented expectations of a 25-basis-point cut, with markets now watching closely for signals on whether the central bank could ease further in the coming months.
"We continue to look for a 25bp rate cut next week, with a further 25bp move in December and 50bp of cuts in early 2026," ING analysts said in a recent note.
Adding to the upbeat tone, U.S. and Chinese officials reached a “framework understanding” on key trade issues over the weekend at the ASEAN Summit in Kuala Lumpur.
Treasury Secretary Scott Bessent said both sides had agreed to defer fresh tariff threats and pause China’s planned restrictions on rare earth exports. The breakthrough sets the stage for U.S. President Donald Trump and Chinese President Xi Jinping to meet later this week to finalize an agreement.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. “I think we’re going to have a deal with China,” Trump told reporters on Sunday. Markets took his comments as a sign that months of tariff tensions may finally ease, a development that has buoyed risk assets globally.
Big tech earnings in focus Meanwhile, attention will turn to corporate earnings, with five of the so-called “Magnificent Seven” tech giants set to report this week.
Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) are due to release results on Wednesday, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday.
Investors will be watching for updates on AI investment, cloud demand, and consumer spending trends.
