Traders work on the floor of the New York Stock Exchange (NYSE) on October 16, 2025 in New York City, USA.
Gina Moon | Reuters
Stock futures rose Sunday night as investors focused on a number of high-profile earnings reports and inflation data expected in the coming days.
Futures linked to the Dow Jones Industrial Average It rose by 84 points (approximately 0.2%). S&P futures Although it rose by 0.2%, Nasdaq 100 futures It rose by 0.3%.
This week’s momentum was fueled by a report in the Wall Street Journal that President Donald Trump has exempted dozens of products from reciprocal tariffs in recent weeks and proposed exempting hundreds more, reflecting an increasingly shared sentiment among administration officials that the U.S. should lower tariffs on some products not made domestically.
Stocks ended a volatile trading week, ultimately closing higher despite a sell-off triggered by escalating tensions between the U.S. and China, local bank losses and declines in some high-flying artificial intelligence stocks. A strong start to the third-quarter earnings season appears to be lifting sentiment, with investors hoping for another quarter-point rate cut at the Federal Reserve’s meeting in late October.
The three major U.S. indexes edged higher on Friday after President Trump expressed optimism about the possibility of a trade deal with China ahead of his meeting with Chinese President Xi Jinping in South Korea later this month.
Treasury Secretary Scott Bessent also said Friday that he believed the situation had “escalated” with China and that he was likely to meet with Chinese Vice Premier He Lifeng next week. The comments suggested to traders that President Trump’s threat to impose 100% tariffs on Chinese imports starting Nov. 1 may not materialize.
The CBOE S&P 500 Volatility Index soared to a high above 28 at one point on Friday, but fell back below 21 as stocks rose.
“Despite a modest rebound in U.S. equities (on Friday), risk assets continue to reflect heightened geopolitical uncertainty, particularly the U.S.-China relationship,” Katie Nixon, chief investment officer at Northern Trust, said in a note to clients. President Nixon added: “This conflict poses significant economic risks to both sides, so the stakes are high for any acceptable compromise to be reached.”
Investors also tried last week to shake off concerns about credit risk, which caused a broad decline in stock prices on Thursday. Zions Inc. and Western Alliance Inc.’s disclosure of problems related to bad loans sent markets into a panic, with stocks of several major financial companies and local banks falling before rebounding on Friday.
Separately, investors continue to keep an eye on the U.S. government shutdown, which is entering its fourth week, as top Democrats and Republicans remain at odds over federal health care subsidies.
Several large companies are scheduled to announce their quarterly results this week. Netflix, coca cola, tesla and intel Among the names on deck. The consumer price index for September will also be released on Friday, which is expected to show that inflation remains high. Traders will be paying particular attention to this report given the ongoing data blackout caused by the government shutdown.
“While investors don’t seem optimistic right now, many economists have expressed concern that an extended government shutdown could impact quarterly gross domestic product growth,” Nixon said. “However, most agree that this is a temporary slowdown, likely to be followed by a period of catch-up.”
