Wall Street is gearing up for a key week, with Dow futures jumping 100 points in early trading Monday.
Investors are entering a crucial stretch of corporate earnings, especially from major tech players with a sense of cautious optimism.
There’s also a close eye on trade talks and signals from the Federal Reserve. The upbeat tone isn’t limited to the Dow; futures tied to the S&P 500 and Nasdaq are also trading higher, pointing to a broadly positive start.
5 things to know before Wall Street opens today
1. Futures tied to the Dow Jones Industrial Average climbed 99 points, or 0.2%. S&P 500 futures also advanced 0.2%, while Nasdaq-100 futures gained 0.3%.
This represents a solid beginning to the week after recent turbulence driven by geopolitical tensions and trade-related news.
The Cboe Volatility Index (VIX) fell to 20.9, reflecting easing market anxiety and stable investor sentiment.
2. All eyes are on big tech this week as earnings season heats up, with Alphabet and Tesla set to report results and lead the charge for the so-called “Magnificent Seven.”
In premarket trading, both stocks are edging higher. Tesla is up about 1%, while Alphabet is gaining 0.7%.
According to FactSet, this elite group is expected to post second-quarter earnings growth of 14%, far outpacing the 3.4% projected for the rest of the S&P 500.
For investors, these reports carry extra weight. Strong numbers could be key to keeping the S&P 500 near its record highs.
3. Markets continue to keep a close watch on trade negotiations between the US and its global partners, as President Trump’s August 1 deadline for new agreements approaches.
Without a deal, higher tariffs could kick in, raising the risk of renewed trade tensions.
Still, most investors appear to view the tariff threats as part of the administration’s negotiating playbook rather than a foregone conclusion.
As a result, equities have held steady and in some cases, moved higher on hopes that a resolution is within reach.
Any major shift in the talks, whether a breakthrough or a breakdown, is expected to move markets quickly, with industrials and multinational companies likely to be among the most affected.
4. It’s a relatively light week for US economic data, with the exception of a business activity update and the usual jobless claims report due Thursday.
More attention is likely to fall on Federal Reserve Chair Jerome Powell, who’s set to speak on Tuesday. Investors will be listening closely for any hints about the Fed’s next move on interest rates.
At the moment, markets see little chance of a rate cut in July, but expectations are building for September, with CME FedWatch data showing odds at around 60%.
5. Adding to the market’s optimism is a growing consensus among Federal Reserve officials that rate cuts are still on the table before the end of 2025.
Several policymakers have downplayed the impact of recent tariff-related inflation, suggesting it hasn’t been as disruptive as initially feared, a view that’s helped reinforce expectations for looser policy ahead.
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