Stock Market Rises: Fed Prepares for Interest Rate Cut!

The Stock Market is Rising, Expectations for Interest Rate Cuts are Increasing

U.S. stock futures gained momentum on Sunday evening as Wall Street prepares for an important week. Among the expectations are the Federal Reserve's announcement of an interest rate cut, earnings reports from major technology companies, and a critical meeting between President Trump and Chinese President Xi Jinping.

Futures tied to the Standard & Poor's 500 rose by 0.7%, while Nasdaq 100 futures increased by 0.9%. Dow Jones Industrial Average futures also gained nearly 300 points, or 0.6%.

This optimism following record closings on Wall Street last week has further encouraged investors. The Dow rose by 472 points, surpassing the 47,000 level, crossing this threshold for the first time. The S&P 500 gained 0.8%, approaching 6,800, while the Nasdaq Composite recorded an increase of over 1%.

In the markets, it is almost certain that the Federal Reserve will lower interest rates this week. The cooling inflation data following the government's delay in releasing the Consumer Price Index (CPI) data has strengthened these expectations.

Moreover, investors' attention is turned towards the high-risk meeting between Trump and Xi scheduled for Thursday in South Korea. The discussions over the weekend are expected to open a new door for a potential trade agreement. Treasury Secretary Scott Bessent stated over the weekend, "I think we are meeting in a very important framework." The Chinese side also announced that they reached a "consensus on preliminary discussions" following these meetings. This positive tone has increased hopes that the world's two largest economies will avoid a deep trade war following heightened tensions.

On the other hand, earnings reports are drawing our eyes to Silicon Valley. Many companies known as the "Magnificent Seven," such as Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Meta (META), are expected to announce their third-quarter results this week.