Stock futures climb ahead of Big Tech earnings

Stockfuturesclimb ahead of Big Tech earnings, widely expected Fed rate

Stock futures rose Sunday evening as investors looked ahead to a widely expected interest rate cut by the Federal Reserve and a raft of Big Tech earnings reports.

SP 500 futuresandNasdaq 100 futureswere up roughly 0.7% and 0.9%, respectively. Futures tied to theDow Jones Industrial Averageadded 290 points, or 0.6%.

Investors expect the Fed to slash rates at its meeting on Oct. 29, particularly after the Bureau of Labor Statistics releasedcooler-than-expected inflation datalast week. Slightly more than 96% of investors expect a deep rate cut to 375 to 400 basis points, while about 3% are betting on a reduction to 400 to 425 basis points, according to theCME FedWatch Tool.

Big Tech companies upcoming earnings reports are also on tap. Several Magnificent 7 stocks, includingAlphabet,Amazon,Apple,Meta PlatformsandMicrosoft, will release their third-quarter results this week. And if earlier Q3 reports are any indication, the companies could post stronger-than-expected financial results.

U.S. President Donald Trump and China President Xi Jinping are scheduled to meet in South Korea on Thursday in an attempt to ease trade tensions, an event that could offer significant clarity and reassurance to investors.

U.S. Treasury Secretary Scott Bessent recently indicated that talks between the leaders have been constructive, far-reaching, in-depth, which could move the needle on negotiations.

A trade deal between the U.S. and China would be a boon for Big Tech stocks, contributing to a broader market bull run, according to Disruptive Technology analyst Dan Ives.

It appears a much broader trade framework/deal could be on the table this week between US and China which would be a huge groundbreaking moment for the tech sector and markets, Ives said Sunday in a note to clients.

Stocks are coming off a bullish week, with all three major indiceshitting record highslast Friday. TheDow Jones Industrial Averageadded roughly 1%, or 472.51 points, to 47,207.12 its first-ever close above the 47,000 mark. TheSP 500ticked up 0.79% to 6,791.69, while theNasdaq Compositerose 1.15% to 23,204.87.