US stock index futures advanced on Monday, supported by easing US-China trade tensions and growing expectations of further interest rate cuts from the Federal Reserve.
During European trading hours, Dow Jones Industrial Average futures gained 0.37%, climbing toward 46,550 ahead of Wall Street’s open. S&P 500 futures rose 0.45% to around 6,730, while Nasdaq 100 futures advanced 0.56%, breaking above 25,100.
Investor sentiment improved after US President Donald Trump signaled potential flexibility on tariffs against China. In recent remarks, Trump stated that tariffs could be lowered if China meets certain conditions, adding that Beijing should resume soybean purchases at previous levels. “We can lower what China has to pay in tariffs, but China has to do things for us too,” he said.
Last week, Wall Street ended lower as persistent trade uncertainty, pressure on regional banks, and profit-taking in AI-related stocks weighed on risk appetite. The Dow Jones slipped 0.65%, the S&P 500 fell 0.63%, and the Nasdaq 100 declined 0.36%.
Traders are now turning their attention to the upcoming corporate earnings season, with key results expected from Netflix, Coca-Cola, Tesla, IBM, and Intel this week. With the ongoing government data blackout limiting access to official economic figures, earnings reports are likely to play an outsized role in shaping market direction.
Meanwhile, expectations for additional Federal Reserve easing continue to support US equities. According to the CME FedWatch Tool, markets have fully priced in a 25-basis-point rate cut in October, with a 96% probability of another cut in December. The growing likelihood of a dovish Fed stance has helped offset lingering concerns over the global growth outlook and geopolitical risks.
