Key points:

• S&P 500 futures pop Monday
• Rate cut coming this week?
• Mag 7 earnings definitely coming this week

Mag 7 is on deck this week and the mood is already bright after last week’s cooler-than-expected inflation number.

🔥 Futures Kick Off the Week in the Green

• US stock futures rose in pre-market Monday, setting the stage for another strong week after all three major indexes — the S&P 500, Nasdaq, and Dow Jones — closed at record highs last Friday.
• S&P 500 futures gained 0.7%, Nasdaq futures jumped 0.9%, and Dow futures added 0.6%, or about 290 points.
• Sentiment is running high as Wall Street gears up for back-to-back catalysts: a highly anticipated Fed rate cut and the most important week of the third-quarter earnings season.

🏦 Fed Rate Cut Looks Locked In

• Traders are all but certain that the Federal Reserve will slash interest rates when it meets October 29, after the Bureau of Labor Statistics reported cooler-than-expected inflation data last week.
• CPI rose 3.0% in September, just below forecasts for 3.1%, giving the Fed cover to start trimming rates to support growth amid global uncertainty.
• Adding to the optimism, US President Donald Trump and China’s President Xi Jinping are expected to meet in South Korea on Thursday — a much-watched moment as the two leaders attempt to cool down trade tensions.

💡 All Eyes on the Magnificent 7

• The Mag 7 crew is on deck to drop earnings data this week. Investors will hear from Alphabet, Amazon, Apple, Meta Platforms, and Microsoft, with most reporting between Tuesday and Thursday.
• After a stretch of solid earnings beats from major banks and industrials, traders are betting Big Tech will once again set the tone for the quarter.
• Strong numbers could reaffirm Wall Street’s faith in AI spending, consumer resilience, and digital advertising growth.

Source: Tradingview