Dow futures surged Monday as investors were anticipating a Federal Reserve rate cut, along with breakthrough US-China trade negotiations, and also major Big Tech earnings. Right now, the Dow Jones Industrial Average futures jumped 337 points, or 0.71%, while Nasdaq futures actually gained 2.31% and S&P 500 futures climbed 0.7% in premarket trading.
Trade Deal Framework Boosts Dow Futures
Treasury Secretary Scott Bessent, confirmed that there had been significant advances in US China trade negotiations, a factor that has been propelling the Dow futures up as the times of writing. Speaking on NBC’s Meet the Press, Bessent had this to say:
“President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs, and I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”
China’s top trade negotiator Li Chenggang also confirmed progress, stating that the two sides reached a preliminary consensus after some weekend discussions in Kuala Lumpur.
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Fed Rate Cut Expectations Drive Dow Futures
Markets are pricing in what looks like a near-certain Fed rate cut this week, which is supporting Dow futures momentum right now. President Trump expressed optimism about the China trade deal, stating:
“I have a great relationship with President Xi. I expect to be able to make a good deal with him. I want him to make a good deal for China — but it’s got to be fair.”
Big Tech Earnings Power Nasdaq and Dow Futures
Apple shares gained 1.25% to reach $262.82 in premarket trading, while Microsoft and other Big Tech companies were preparing to report quarterly results. The tech-heavy Nasdaq‘s 2.31% surge has been boosting overall Dow futures sentiment as investors anticipated strong earnings that are driven by AI investments along with cloud computing growth.
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The combination of Fed rate cut expectations, the China trade deal framework, and Big Tech earnings actually created a powerful catalyst for Dow futures, with the S&P 500 futures even reflecting broad-based strength across multiple sectors.