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U.S. Stock Futures Edge Higher as AI Momentum and Fed Rate Cut Fuel Optimism

U.S. Stock Futures Edge Higher as AI Momentum and Fed Rate Cut Fuel Optimism. Source: Shashank457, CC BY-SA 4.0, via Wikimedia Commons

U.S. stock futures rose slightly on Sunday evening, extending Wall Street’s upbeat momentum after a strong October driven by optimism around artificial intelligence, robust corporate earnings, and easing U.S.-China trade tensions.

As of 19:30 ET (00:30 GMT), S&P 500 futures climbed 0.3% to 6,896.50 points, Nasdaq 100 futures gained 0.4% to 26,107.0, and Dow Jones futures edged up 0.3% to 47,846.0.

The positive trend followed a strong close to October, where the S&P 500 advanced 2.3%, marking its sixth consecutive monthly gain. The Nasdaq Composite surged 4.7% during the month, while the Dow Jones Industrial Average added 2.5%. Market confidence was fueled by renewed enthusiasm for AI innovation and better-than-expected earnings from major tech firms.

Amazon.com (NASDAQ:AMZN) rallied nearly 10% after strong cloud division growth and an upbeat forecast. Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META) also posted solid gains after reporting robust quarterly results, reinforcing investor faith in the technology sector’s resilience.

Adding to the optimism, the Federal Reserve cut its benchmark interest rate by 25 basis points to 3.75%–4.00%, its first reduction in months. Although Chair Jerome Powell cautioned that future cuts are uncertain, markets viewed the move as a positive sign of support for economic growth amid moderating inflation.

Investor sentiment was further lifted by signs of easing trade friction between Washington and Beijing. Presidents Donald Trump and Xi Jinping agreed to scale back certain tariffs and delay export restrictions, signaling progress in U.S.-China relations.

Looking ahead, traders are watching upcoming corporate earnings from major firms including Advanced Micro Devices (NASDAQ:AMD), Palantir Technologies (NASDAQ:PLTR), Qualcomm (NASDAQ:QCOM), Uber Technologies (NYSE:UBER), and McDonald’s Corporation (NYSE:MCD), which could provide key insights into tech and consumer sector performance.

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