Wall Street futures climbed Monday morning after a steep selloff ended last week on a sour note. The rebound reflects investor confidence that the Federal Reserve will move toward cutting interest rates soon. Dow, S&P 500, and Nasdaq futures all posted gains in early trading. Investors responded to last week’s weak jobs report by pricing in a greater chance of a September rate cut. According to analysts, market participants now see an 80% chance of that outcome.
Wall Street futures began rising as expectations shifted sharply over the weekend. Investors believe the Fed will now act more aggressively to protect growth. The poor jobs data revealed downward revisions from past months, signaling weakness in the labor market. Last week, U.S. indexes tumbled after disappointing employment numbers and new tariffs hit the headlines. The S&P 500 experienced its biggest one-day drop in over two months. These developments triggered renewed fears about slowing economic momentum.
Wall Street futures gained as political developments also influenced sentiment. President Trump criticized the Fed’s decision to keep rates steady. He also hinted at replacing Fed Chair Jerome Powell, following the sudden resignation of Governor Adriana Kugler. Speculation rose over who might take the top job next year. Analysts believe that Trump may soon nominate a replacement aligned with his views on monetary easing. This leadership change could shift future Fed policy dramatically.
Trade tensions also weighed on markets. Trump signed an executive order to impose new tariffs on several U.S. trading partners, including Canada, India, Brazil, and Taiwan. Despite diplomatic efforts, the new tariffs appear likely to remain in place. Investors welcomed the bounce in Wall Street futures. However, market watchers remain cautious. The outlook depends heavily on upcoming economic indicators and commentary from central bank officials.
This week’s calendar includes factory order data, jobless claims, and remarks from the Atlanta Fed President. Although data releases are limited, traders will monitor every detail for signs of policy shifts. Meanwhile, earnings season continues. Major firms like Disney, Eli Lilly, and Palantir are set to report results. Corporate earnings have generally exceeded expectations so far. Over 80% of S&P 500 companies have topped analyst forecasts.
In corporate news, Joby Aviation’s shares rose after news emerged about a possible acquisition of Blade Air Mobility. Blade’s shares surged in premarket trading, reflecting investor interest in the aviation space. Wall Street futures may remain volatile, but the current rebound shows investor optimism. Rate cut hopes and strong earnings keep the bulls active, despite rising political and trade risks.
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