By Pranav Kashyap and Twesha Dikshit (Reuters) -U.S. stock index futures were trading at record highs on Monday as expectations of a trade deal between China and the United States aided risk appetite in a busy week of Big Tech earnings and a widely expected rate reduction from the Federal Reserve. At 06:22 a.m. ET, […]
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Wall St futures at record highs on US-China trade deal hopes
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By Pranav Kashyap and Twesha Dikshit
(Reuters) -U.S. stock index futures were trading at record highs on Monday as expectations of a trade deal between China and the United States aided risk appetite in a busy week of Big Tech earnings and a widely expected rate reduction from the Federal Reserve.
At 06:22 a.m. ET, Dow E-minis rose 258 points, or 0.54%, Nasdaq 100 E-minis were up 332.5 points, or 1.3%, and S&P 500 E-minis gained 59.75 points, or 0.88%.
Negotiators from the world’s top two economies on Sunday outlined the framework for a deal to pause steeper American tariffs and Chinese rare earths export controls, ahead of Thursday’s meeting between U.S. President Donald Trump and China’s Xi Jinping.
“Donald Trump’s Asia tour takes centre stage this week, with global markets fixated on his highly anticipated meeting with Chinese President Xi Jinping on Thursday,” Pepperstone’s head of research, Chris Weston, said in a note.
“Markets had largely viewed this as the higher-probability outcome, so the news won’t come as a major surprise and is partly priced.”
U.S.-listed shares of Chinese companies gained in premarket trading. Alibaba Group Holding and JD.com gained around 3% each. PDD Holdings rose 2% and Baidu added 4.9%.
The S&P 500 and the Nasdaq notched their biggest weekly gains last week since August, after cooler-than-expected inflation data solidified expectations for a 25-basis-point rate cut from the central bank on Wednesday and raised the odds on a quicker easing cycle.
Any forward‑looking comments from Fed Chair Jerome Powell will be monitored for hints on another cut in December, especially with the continuing government shutdown disrupting key economic data releases.
BLOCKBUSTER EARNINGS
More than 170 companies are expected to report results as the busiest week of this earnings season kicks off, with all eyes on Big Tech.
Earnings from “Magnificent Seven” heavyweights including Microsoft, Apple, Alphabet, Amazon, and Meta will be a litmus test for Wall Street’s high valuations and the rally’s staying power.
The megacaps constitute nearly 35% of the S&P 500 and have the heft to move markets, especially as investors look for signs of continued AI-related optimism, which have been the main driver for equity markets in recent months.
Analysts warn that mere earnings beats won’t cut it — investors are looking for clear signs their outsized bets on artificial intelligence are still fueling long-term growth.
Third-quarter S&P earnings growth is expected to be 10.4% year-on-year, higher than an earlier estimate of 8.8%, according to LSEG data.
In premarket trading, U.S.-listed shares Of Argentine companies jumped after President Javier Milei’s election victory.
YPF surged 21.9%, while Grupo Supervielle and Banco Macro gained more than 30% each. Banco BBVA Argentina rose 38% and Grupo Financiero Galicia advanced 35%.
Shares of U.S. rare earth miners fell, with a potential deal with China likely to pause rare earth export controls.
MP Materials fell 4.6%, with USA Rare Earth and NYSE-listed shares of Trilogy Metals down 6.1% and 5%, respectively.
(Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by Devika Syamnath and Pooja Desai)