NEW YORK — Global investors are bracing for a high-stakes week on Wall Street, with stock futures climbing on expectations of a major Federal Reserve rate cut and blockbuster earnings from the world’s biggest technology companies.
As trading opened Sunday evening in the U.S., futures tied to the S&P 500 and Nasdaq 100 rose 0.7% and 0.9%, respectively, while Dow Jones Industrial Average futures gained 290 points, or 0.6%. The optimism reflects a growing belief that the Fed will cut interest rates for the first time in over a year when it meets on October 29, following last week’s cooler-than-expected inflation report.
According to the CME FedWatch Tool, nearly 96% of investors now expect a deep rate cut to between 3.75% and 4.00%, a move that could inject fresh momentum into global equity markets after months of uncertainty.
Big Tech in Focus: The “Magnificent 7” Earnings
Adding to the week’s drama, Wall Street’s most influential companies — including Apple, Amazon, Alphabet (Google), Meta Platforms, and Microsoft — are set to report their third-quarter earnings. Analysts are watching closely to see whether these so-called “Magnificent 7” giants can sustain their momentum amid cooling inflation and renewed hopes for U.S.–China trade cooperation.
Early Q3 results from other sectors suggest tech firms could again beat expectations, bolstering market confidence that corporate America remains resilient despite macroeconomic headwinds.
U.S.–China Talks Offer Market Catalyst
In a potential geopolitical breakthrough, U.S. President Donald Trump and China’s President Xi Jinping are expected to meet in South Korea on Thursday — their first in-person talks in months — to discuss trade relations.
U.S. Treasury Secretary Scott Bessent described recent negotiations as “constructive, far-reaching, and in-depth,” signaling possible progress toward a long-awaited trade framework.
According to Dan Ives, senior analyst at Wedbush Securities, “A much broader trade deal could be on the table this week between the U.S. and China, which would be a groundbreaking moment for both the tech sector and the broader markets.”
Markets at Record Highs
Wall Street ended last week on a strong note, with all three major indexes hitting fresh records. The Dow Jones Industrial Average closed above the 47,000 mark for the first time, rising 472 points to 47,207. The S&P 500 gained 0.79% to 6,791, while the Nasdaq Composite advanced 1.15% to 23,204.
If the Fed follows through with a substantial rate cut and Big Tech delivers another round of robust earnings, analysts say October could mark the start of a new leg in the global bull market — one powered by easing monetary policy, tech innovation, and renewed geopolitical stability.
