U.S. stock futures edged upward Monday night, buoyed by investor optimism following a sharp Wall Street rebound earlier in the day. The upswing came after last week’s steep losses triggered by weak labor data and renewed trade tensions.
By 20:10 ET (00:10 GMT):
- S&P 500 Futures rose 0.1% to 6,363.25 points
- Nasdaq 100 Futures climbed 0.2% to 23,329.75 points
- Dow Jones Futures advanced 0.1% to 44,337.0 points
The gains reflect market confidence that a Federal Reserve rate cut is likely coming in September, a sentiment reinforced by economic data and policy uncertainty.
Fed Rate Cut Bets Hit 84% After Jobs Miss
Monday’s stock market gains were underpinned by growing expectations that the Federal Reserve will act soon to support the economy. Weak nonfarm payrolls data released last week showed sluggish job growth, raising alarms about the resilience of the U.S. labor market.
As a result, traders have assigned an 84% probability to a rate cut in September, according to the CME FedWatch Tool. This rate-cut optimism triggered a wave of dip-buying after a multi-day selloff.
Earlier Monday, the S&P 500 surged 1.5%, while the NASDAQ Composite jumped 2%. The Dow Jones Industrial Average rose 1.3%, erasing much of last week’s losses tied to new trade barriers and economic headwinds.
The backdrop remains complex:
- President Trump reiterated plans to increase tariffs on Indian imports, citing its purchases of Russian oil.
- A 25% tariff on Indian goods was already imposed earlier this month.
- Trump’s recent executive order added tariffs on imports from nearly 70 countries, raising investor anxiety over trade’s impact on inflation.
Palantir Rallies; More Earnings Ahead
Palantir Technologies (NASDAQ: PLTR) posted strong earnings, with quarterly revenue surpassing $1 billion for the first time. The stock rose 4.5% in after-hours, following a 4% intraday gain as investors cheered its performance in the defense tech space.
Other notable moves:
- Hims & Hers Health (NYSE: HIMS) plunged over 13% in extended trade, after missing revenue estimates despite a bottom-line beat.
- Advanced Micro Devices (NASDAQ: AMD), Rivian Automotive (NASDAQ: RIVN), and Caterpillar (NYSE: CAT) will report results Tuesday.
- Wednesday brings high-profile earnings from Walt Disney (DIS), McDonald’s (MCD), and Uber (UBER).
Key Earnings to Watch:
- Tuesday: AMD, Rivian, Caterpillar
- Wednesday: Disney, McDonald’s, Uber
With macroeconomic pressure building and central bank decisions looming, this earnings season could play a pivotal role in shaping investor sentiment.