U.S. Stock Futures Rise as Trump’s Tax Bill Advances and Rate Cut Hopes Grow

U.S. stock futures edged higher Sunday evening following strong weekly gains on Wall Street, with both the S&P 500 and Nasdaq closing at record highs. S&P 500 Futures rose 0.3% to 6,241.75, Nasdaq 100 Futures climbed 0.4% to 22,841.75, and Dow Jones Futures advanced 0.5% to 44,342.0 by 8:45 p.m. ET.

Investor sentiment was buoyed by the Senate’s narrow 51–49 procedural vote to begin debate on President Donald Trump’s sweeping tax and spending bill, dubbed “One Big Beautiful Bill.” The legislation proposes major tax cuts, spending reforms, and border security funding. While it passed the Senate hurdle, the bill still faces challenges in the House over concerns about its $3.3 trillion projected impact on the federal deficit, according to the Congressional Budget Office.

Wall Street ended the week on a high note, driven by optimism around Federal Reserve rate cuts and easing geopolitical tensions. On Friday, the S&P 500 and Nasdaq each gained 0.5% to reach record closing highs. The Dow Jones Industrial Average jumped 1%, moving closer to its all-time peak.

Market momentum was fueled by cooling inflation data, which strengthened expectations for two potential rate cuts by the Fed later this year. Investors were also encouraged by the Trump-brokered ceasefire between Israel and Iran, along with growing hopes that U.S. trade deals could be finalized before Trump’s July 9 deadline.

Despite Fed Chair Jerome Powell warning that tariffs may push inflation higher in the short term, markets are increasingly pricing in monetary easing. The combination of legislative developments, macroeconomic signals, and geopolitical calm helped propel risk appetite into the new week.