US stock futures experienced modest declines on Monday evening after Wall Street achieved record closes earlier in the day. As investors anticipate a busy week ahead, key events include earnings announcements from major technology firms, a Federal Reserve rate decision, and crucial discussions on US-China trade relations.
Futures for the Dow Jones Industrial Average hovered just below the flatline, while both S&P 500 and Nasdaq 100 futures dipped slightly by approximately 0.1%. Earlier on Monday, the S&P 500 notably closed above the 6,800 mark for the first time, joining the Dow and Nasdaq Composite in hitting record highs. The surge in stock prices was attributed to a lessening of tensions between the United States and China, especially ahead of a highly anticipated meeting between President Trump and China’s President Xi Jinping scheduled for Thursday.
Reports suggest that both nations have tentatively agreed on a framework for a potential trade deal. This agreement may address issues related to rare earth minerals, soybean purchases, and the operations of TikTok within the United States.
In parallel, the Federal Reserve is set to commence a two-day policy meeting on Tuesday, where traders widely expect a second consecutive rate cut. Investors are keenly seeking insights from Fed Chair Jerome Powell regarding the possibility of another cut in December, particularly given the data blackout resulting from the ongoing US government shutdown.
Earnings reports from high-profile technology companies will also be under scrutiny, especially those from the so-called “Magnificent Seven” giants. Amazon has garnered attention following its announcement of a plan to cut up to 30,000 jobs from its corporate workforce. Additionally, earnings releases from Alphabet, Apple, Meta, and Microsoft are anticipated throughout the week, further driving investor expectations.
In other market news, gold prices have dipped below the $4,000 mark as easing geopolitical tensions prompt many investors to take profits amid shifting market conditions.
