U.S. stock futures advanced early Monday as investors weighed robust corporate earnings prospects against the backdrop of persistent inflation concerns and an ongoing government shutdown.
At 16:40 (GMT+7), contracts tied to the Dow Jones Industrial Average rose 0.25%, or 115.80 points, to 46,306.40 points, while S&P 500 futures climbed 0.34%, or 22.40 points, to 6,686.40 points. Nasdaq 100 futures also gained 0.43%, or 107.60 points, to 24,925.60 points.
Wall Street enters the new week on a positive note after a Friday rally, sparked by President Trump’s remarks regarding U.S.-China trade tensions. President Trump stated that the current tariff levels imposed on Chinese goods are “not sustainable,” which fueled optimism for de-escalation. The administration has recently exempted multiple products from reciprocal tariffs, and additional relief may be forthcoming, according to official sources.
Treasury Secretary Scott Bessent, in comments to reporters, noted that negotiations with Beijing have eased, and that he plans to meet with Chinese Vice Premier He Lifeng in the coming days. Market participants interpreted the remarks as a signal that the administration’s proposed 100% tariff on Chinese imports, slated for November 1, may be postponed or scrapped.
Meanwhile, the government shutdown has stretched into a third week, as debates continue between lawmakers from Republicans and Democrats over federal healthcare subsidies. Economists caution that an extended impasse could weigh on near-term GDP, though most expect any drag on growth to be transitory.
The shutdown has delayed the release of vital economic reports, impeding the Federal Reserve’s ability to assess inflation and employment trends. However, the Bureau of Labor Statistics is scheduled to publish September’s Consumer Price Index this Friday following a week-long delay.
Market analysts anticipate that inflation figures will point to continued pricing pressures, a crucial factor for policymakers ahead of the Fed’s meeting next week. Moreover, earnings season takes center stage over the coming days, with quarterly results from major companies including Netflix, Coca-Cola, Tesla, and Intel drawing investor focus.
