U.S. stock futures experienced an uptick early Monday, reflecting optimism as investors braced for the quarterly earnings reports from major technology firms and a potential interest rate cut by the Federal Reserve later in the week. As of 4:03 a.m. EDT on October 27, futures for the Nasdaq 100, S&P 500, and Dow Jones Industrial Average were up by 1.11%, 0.83%, and 0.66%, respectively.
On Friday, all three major indexes concluded the trading day at record highs, buoyed by the release of cooler-than-expected inflation data from the Bureau of Labor Statistics. This development has heightened expectations for further monetary easing measures from the Federal Reserve.
For the week, the Dow Jones climbed by 2.20%, the S&P 500 increased by 1.92%, and the Nasdaq 100 rose by 2.18%, showcasing widespread optimism across various sectors.
Traders are now looking ahead to the Federal Reserve’s policy meeting scheduled for October 28–29, where markets are anticipating at least a 25-basis-point rate cut. This anticipation is compounded by the earnings season, with several prominent companies from the so-called “Magnificent 7” set to announce their results this week, including tech giants such as Amazon, Apple, Microsoft, Alphabet, and Meta Platforms.
In addition to these tech titans, several other notable firms are also preparing to release their earnings, including SoFi Technologies, PayPal, Visa, Mastercard, UnitedHealth, Boeing, and Starbucks.
Market dynamics are further influenced by rising U.S. 10-year Treasury yields, currently hovering around 4.03%. In terms of commodities, WTI crude oil futures have shown a decrease, resting at approximately $61.48 per barrel, while the Gold Spot price in U.S. dollars has declined to nearly $4,067 per ounce.
Across the Atlantic, European stocks opened on a mostly positive note on October 27, buoyed by optimistic expectations regarding the Federal Reserve’s anticipated rate cut and a significant meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
In the Asia-Pacific region, markets showed upward momentum on Monday, following comments from the White House indicating progress toward a potential trade deal with China. The upcoming deal looks to halt planned 100% tariffs on Chinese imports starting November 1 while outlining terms for resolving TikTok’s U.S. operations. In exchange, China may delay new export controls on rare earth minerals and commit to increasing purchases of U.S. agricultural products, particularly soybeans.
In market performance, Hong Kong’s Hang Seng index rose by 1.02%, the Shanghai Composite gained 1.18%, and the Shenzhen Component saw an increase of 1.42%. Meanwhile, Japan’s Nikkei rose by 2.46%, and the Topix added 1.70%, driven by anticipation surrounding the forthcoming meeting between Trump and Japanese Prime Minister Sanae Takaichi.
