Dow futures rose by as much as 80 points early Monday morning, hinting at a strong start for Wall Street in what’s shaping up to be a busy and potentially game-changing week.
Investors are gearing up for several major events, including a key Federal Reserve policy decision, earnings reports from big-name tech companies, and a reactions to US-EU trade deal.
The market sentiment remained upbeat, helped by the S&P 500 and Nasdaq hitting fresh highs, and some growing confidence around global trade talks.
But no one’s getting too comfortable just yet with the Fed meeting coming up and big tech earnings on deck, there’s still plenty that could rattle the markets.
5 things to know before Wall Street opens
1. One of the big headlines this morning is that the US and the EU have finally reached a preliminary trade deal.
They’ve agreed on a flat 15% tariff on each other’s goods, not exactly a game-changer, but it brings some clarity after months of back-and-forth.
That bit of certainty seems to be going over well with investors, as markets in both the US and Europe moved higher on the news.
2. Investors are gearing up for a packed week of earnings, with the spotlight firmly on the so-called “Magnificent Seven” tech heavyweights like Meta, Microsoft, Amazon, Apple, and Alphabet.
So far, the second-quarter earnings season has been pretty solid, with more than 80% of companies beating expectations.
That’s definitely helped keep the market rally going.
But with the biggest names reporting this week, things could swing quickly; a strong showing could push stocks even higher, while any surprises or disappointments might rattle investor confidence.
3. The Fed kicks off a closely watched policy meeting this week, and while almost no one expects a rate change this time around, that’s not where the real focus is.
What investors really care about is the tone, any hint about when rate cuts might actually happen, or how the Fed is reading the current mix of sticky inflation, global tariffs, and surprisingly resilient economic data.
Even subtle shifts in language could move the markets, so expect Wall Street to hang on every word from Powell and company.
4. Strong corporate earnings last week, along with a string of US-brokered trade deals including agreements with Japan and several Southeast Asian countries, helped push the S&P 500 and Nasdaq to fresh record highs.
But the rally isn’t without its risks. Concerns are still swirling around potential tariff shifts, pressure on specific sectors like semiconductors and EVs, and the usual dose of geopolitical uncertainty.
5. Beyond earnings and the Fed meeting, investors are also keeping a close eye on a couple of key US economic reports due this week, namely the PCE inflation numbers and the latest non-farm payrolls data.
Both will offer fresh insight into how inflation and the labor market are holding up amid shifting tariffs and broader global uncertainty.
Depending on how those numbers come in, they could play a big role in shaping expectations around the Fed’s next move.
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