Wall Street is starting the week with a lift in its step. Overnight, futures turned green as optimism grew that the U.S. and China could edge closer to easing trade tensions. Dow futures rose 118 points, or 0.3%. S&P 500 contracts added 0.4%, while Nasdaq futures climbed 0.5%.
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Investors reacted to upbeat comments from President Donald Trump, who said the U.S. is “going to do fine with China.” The remarks came ahead of Treasury Secretary Scott Bessent’s planned meeting in Malaysia with China’s Vice Premier He Lifeng. Traders hope the talks can cool frictions before tariff hikes arrive on November 1.
Investors Look Beyond Bank Fears
Last week’s anxiety about regional banks is fading fast. Friday’s rebound gave markets breathing room, and now attention has shifted toward global diplomacy and corporate results. Solid earnings reports and reassuring trade headlines have renewed risk appetite across sectors.
Tech and consumer stocks led early gains, supported by optimism that easing trade pressure could extend the market’s late-year rally. Investors are also betting that any progress between Washington and Beijing could stabilize supply chains and support global growth.
Economic Data and Fed Watch Still Loom
Even as optimism builds, traders remain alert to incoming data. Consumer inflation numbers due Friday will be the last major report before the Federal Reserve meets on October 29. With several agencies closed by the government shutdown, the data gap has left policymakers flying with limited visibility.
Most analysts expect another quarter-point rate cut, a view that helped gold climb 1.4% to $4,273 an ounce on Monday. Treasury yields held near 4%, while the dollar edged higher by 0.1% against major peers. The market tone stayed steady rather than euphoric, signaling cautious optimism rather than risk-on frenzy.
Earnings and Diplomacy Steer Wall Street’s Focus
This will be a crowded week for earnings, with about 80 S&P 500 (SPX) companies set to report results. Netflix (NFLX), Coca-Cola (KO), and Tesla (TSLA) will headline the list. Investors will listen closely for comments on pricing power, demand trends, and the effect of higher borrowing costs.
Trade headlines will remain the wildcard. If the U.S.–China meetings in Malaysia produce real progress, equities could keep climbing. If they stall, traders may shift back to defensive positioning. For now, investors seem willing to believe that better news lies ahead.
Key Takeaway
After weeks of worry, markets are finally catching a tailwind. Hints of U.S.–China cooperation, steadier bank sentiment, and expectations of easier Fed policy have put some confidence back in the market’s sails.
The Dow’s early rise may look small, but it tells a bigger story. Wall Street is ready to trade on hope again, at least until the next headline tests its nerve.
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