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U.S. Stock Futures Extend Rally Ahead of Fed Rate Cut and U.S.-China Trade Progress

U.S. Stock Futures Extend Rally Ahead of Fed Rate Cut and U.S.-China Trade Progress. Source: Carlos Delgado, CC BY-SA 3.0, via Wikimedia Commons

U.S. stock futures climbed on Sunday evening, continuing last week’s rally as optimism grew over a potential Federal Reserve rate cut and signs of progress in U.S.-China trade talks. S&P 500 Futures advanced 0.7% to 6,873.75 points, Nasdaq 100 Futures rose 0.9% to 25,726.75 points, and Dow Jones Futures gained 0.6% to 47,676.0 points by 19:54 ET (23:54 GMT).

All three major indexes—the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite—closed at record highs on Friday, with respective gains of 1%, 0.8%, and 1.2%. Investor sentiment strengthened after U.S. inflation data showed consumer prices cooled more than expected in September, fueling expectations that the Federal Reserve will cut interest rates at its upcoming two-day policy meeting ending October 29. Analysts from ING project a 25-basis-point cut next week, followed by another in December and additional easing in early 2026.

Optimism also grew after U.S. and Chinese officials reportedly reached a “framework understanding” on trade at the ASEAN Summit in Kuala Lumpur. Treasury Secretary Scott Bessent confirmed both nations agreed to postpone new tariffs and pause China’s planned rare earth export restrictions. The development sets the stage for President Donald Trump and Chinese President Xi Jinping to finalize an agreement later this week.

“I think we’re going to have a deal with China,” Trump said Sunday, signaling an end to prolonged trade tensions that have weighed on global markets.

Meanwhile, investor attention is turning to big tech earnings, with Microsoft, Meta, and Alphabet reporting on Wednesday, followed by Apple and Amazon on Thursday. Traders are watching closely for insights into AI investments, cloud computing demand, and consumer spending trends—all key factors that could shape the next market rally.

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