U.S. stock futures held steady Monday evening after a strong Wall Street session, with the Nasdaq Composite closing at a record high. Futures trading showed S&P 500 contracts inching up 0.1% to 6,510.25, Nasdaq 100 futures flat at 23,810.0, and Dow Jones futures up 0.1% at 45,618.0 by 20:07 ET (00:07 GMT).
The Nasdaq rose 0.5% on Monday, powered by semiconductor stocks. Broadcom Inc. (NASDAQ: AVGO) led the gains, extending momentum from its upbeat earnings report last week. The S&P 500 added 0.2%, while the Dow Jones Industrial Average climbed 0.3%, underscoring broad investor confidence despite economic headwinds.
Investors remain focused on monetary policy, with markets betting the Federal Reserve could move to lower interest rates at its September meeting.
Fed Cut Bets Strengthen After Jobs Data
Expectations for rate cuts surged following weaker-than-expected U.S. labor market data. Nonfarm payrolls increased by only 22,000 in August, well below the forecast, while unemployment rose to 4.3%, the highest level in over a year.
According to CME’s FedWatch tool, traders now fully price in at least a 25 basis point rate cut, with the probability of a 50 basis point reduction also gaining traction.
Upcoming inflation reports are expected to play a pivotal role in shaping the Fed’s decision:
- CPI data: Thursday’s August report may reveal the effects of new tariffs introduced last month.
- PPI data: Also due Thursday, offering further signals on price pressures.
- Fed meeting: Set for next week, with markets bracing for policy easing.
Lower rates typically reduce borrowing costs, supporting both corporate investment and consumer spending, which in turn could bolster equity markets further.
Earnings and Apple Event in Focus
Beyond monetary policy, investors are also eyeing corporate earnings and tech sector developments this week.
GameStop Corp. (NYSE: GME) will release fiscal Q2 results Tuesday, after a year-to-date decline of nearly 26%. Oracle Corporation (NYSE: ORCL) is scheduled to post fiscal Q1 2026 earnings after the market close the same day.
Meanwhile, Apple Inc. (NASDAQ: AAPL) will host its “Awe Dropping” event on Sept. 9 at Apple Park, Cupertino. The company is expected to debut the iPhone 17 lineup, including a slim “Air” edition, alongside updated Apple Watch models and third-generation AirPods Pro.
These developments could add fresh catalysts for tech-heavy indexes already benefiting from robust momentum in semiconductors and investor optimism over Fed policy easing.