Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 16, 2025.
Jeenah Moon | Reuters
Stock futures moved higher Sunday night as investors turn their attention towards a slew of big-name earnings reports and inflation data expected in the coming days.
Futures tied to the Dow Jones Industrial Average jumped 84 points, or about 0.2%. S&P futures gained 0.2%, while Nasdaq 100 futures rose 0.3%.
Helping sentiment to start the week was a report from The Wall Street Journal that said President Donald Trump in recent weeks has exempted dozens of products from his reciprocal tariffs and also offered to exempt hundreds more, reflecting an increasingly shared sentiment among administration officials that the U.S. should lower duties from some goods that are not domestically produced.
Stocks are coming off a volatile trading week, ultimately closing higher despite flaring tensions between the U.S. and China, a sell-off sparked by regional bank losses and declines in a few high-flying artificial intelligence stocks. A strong start to the third-quarter earnings season appears to be lifting sentiment, alongside investors’ anticipation of another quarter percentage point rate cut at the Federal Reserve’s late October meeting.
The three major U.S. indexes edged higher on Friday after Trump appeared optimistic on a potential trade deal with China ahead of his meeting with Chinese President Xi Jinping later this month in South Korea.
Treasury Secretary Scott Bessent also said Friday that he thinks “things have de-escalated” with China and that he will likely be meeting with counterpart Chinese Vice Premier He Lifeng in the coming week. These comments suggested to traders that Trump’s threat of an additional 100% tariff on Chinese imports beginning Nov. 1 may not happen.
The Cboe S&P 500 Volatility Index had jumped to a high above 28 at one point on Friday before easing below 21 as stocks moved higher.
“In spite of [Friday’s] modest rebound in U.S. equities, risk-assets are reflecting heightened geopolitical uncertainty — particularly regarding U.S./China relations,” Katie Nixon, chief investment officer at Northern Trust, said in a note to clients. Nixon added that “the dispute presents significant economic risks to both sides, so the stakes are high to reach some sort of a palatable compromise.”
Investors last week also attempted to move past concerns of credit risks that had caused a broader rout on Thursday. The market panicked after Zions and Western Alliance disclosed issues tied to bad loans, leading shares of several financial heavyweights and regional banks to swing lower before they rebounded on Friday.
Separately, investors continue to monitor the U.S. government shutdown, which is entering its fourth week as top Democrats and Republicans remain locked in a dispute over federal health-care subsidies.
This week, several large companies are expected to report quarterly results. Netflix, Coca-Cola, Tesla and Intel are among the names on deck. The September consumer price index is also set for release on Friday and is expected to show inflation remains hot. Traders will be paying special attention to the report, given the ongoing data blackout caused by the shutdown.
“Investors seem non-plussed so far, but many economists are raising concerns that a prolonged shutdown may impact quarterly GDP growth,” Nixon said. “Most acknowledge, however, that this would represent a temporary slowdown that would likely be followed by a catch-up period.”