US stock futures showed modest gains Monday morning as investors prepared for a crucial week marked by the anticipated Federal Reserve rate cut, a series of earnings reports from major technology companies, and a significant meeting between President Trump and Chinese President Xi Jinping.
Futures for the S&P 500 increased approximately 0.8%, while Nasdaq 100 futures saw a more modest rise of 0.1%. The Dow Jones Industrial Average futures climbed nearly 300 points, translating to an increase of around 0.6%.
This positive sentiment comes on the heels of a successful week on Wall Street, with all three primary indexes reaching record highs. The Dow surged by 472 points to close above the 47,000 mark for the first time. The S&P 500 rose 0.8%, nearing the 6,800 level, while the Nasdaq Composite climbed over 1%.
Market analysts believe a reduction in interest rates is imminent, particularly following a release of cooler-than-expected inflation data last week due to the delay in the government’s Consumer Price Index (CPI) report.
Additionally, attention is focused on the high-stakes discussion set to occur between Trump and Xi in South Korea on Thursday. Treasury Secretary Scott Bessent indicated on Sunday that a significant framework for a broader trade agreement might have been established. Reports also suggest that China acknowledged the “preliminary consensus” that emerged from recent talks, fueling optimism that the two largest economies might navigate past escalating trade tensions.
As the week unfolds, the spotlight also shifts to Silicon Valley, where several members of the so-called “Magnificent Seven” tech firms are slated to release their third-quarter earnings. Notable companies include Apple, Microsoft, Alphabet, Amazon, and Meta, all of which are expected to provide insights into their financial health and market outlook.
In conjunction with these developments, gold prices continue to decline, a trend many analysts attribute to the decreasing need for safe-haven assets amid the prospect of a US-China trade deal. The latest updates from the financial markets are keenly awaited as the week’s events unfold.
