Traders work on the floor of the New York Stock Exchange (NYSE) on Oct. 20, 2025 in New York City.
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Stock futures are slightly higher Monday night after the previous session’s broad rally. Investors await a busy earnings week that could inform the trajectory of a market that keeps on roaring.
Futures tied to the Dow Jones Industrial Average added 33 points, or less than 0.1%. S&P futures and Nasdaq 100 futures each hovered above the flatline.
In after-hours trading, Zions Bancorp shares were 2% higher after the regional bank reported third-quarter profits that rose from a year ago, despite the disclosure of some bad loans late last week that sparked a broader market rout.
The three major U.S. indexes rose on Monday, lifted by a jump in Apple shares and optimism that the U.S. government shutdown could be nearing an end. National Economic Council director Kevin Hassett told CNBC’s “Squawk Box” Monday that the impasse — now the third-longest government shutdown in U.S. history — “is likely to end sometime this week” and that the White House was prepared to take stronger measures to force an end to the stalemate if no deal is reached this week.
Investors are monitoring a crucial week ahead for third-quarter earnings, which are revving up in the coming days with Netflix and Coca-Cola set to report on Tuesday and Tesla due Wednesday. A strong start to the earnings season so far appears to be supporting the broader market rally, particularly amid an economic data blackout due to the government shutdown.
Roughly three-quarters of the S&P 500 companies that have posted results so far have beaten expectations, according to Bank of America. Major tech companies are expected to account for a dominant portion of profits as the artificial intelligence trade remains strong, with the “Magnificent 7” companies expected to report year-over-year earnings growth of 14.9%, compared with 6.7% for the index’s remaining 493 companies, per FactSet.
“If the Mag Seven can deliver on elevated profit expectations … markets could see another leg higher. Market action on Friday and Monday might suggest investors are beginning to place their chips on Big Tech ahead of key profit reports next week,” said Ameriprise Financial chief market strategist Anthony Saglimbene. “Given elevated expectations and valuations, results from this group could influence broader market direction into year-end.”
“Profit outperformance, combined with stable outlooks and strong AI tailwinds, could be greeted favorably as we move through the earnings season, though some may argue stock prices already reflect these positives,” Saglimbene added.
Propping up sentiment is also the market’s anticipation of another quarter percentage point rate cut at the Federal Reserve’s late October meeting. Consumer price index data due Friday is expected to give clues on the state of inflation, which could influence the central bank’s upcoming decision.
Trade tensions between the U.S. and China are also in the spotlight. President Donald Trump has threatened an additional 100% tariff on Chinese imports beginning Nov. 1, but his optimistic comments on a potential trade deal with Beijing have assuaged fears about an escalating trade war. Trump said on Monday he expects to reach a fair deal with Beijing after his upcoming meeting with Chinese President Xi Jinping later this month in South Korea.