Dow Jones futures surge over potential for Fed rate cut, await US ISM PMI data

• Dow Jones futures appreciate due to the rising likelihood that the Fed will deliver an interest rate cut in September.
• Traders monitor Trump's actions regarding the nomination of a replacement for Fed Governor Adriana Kugler.
• Palantir climbed over 4%, while Hims & Hers Health plunged roughly 13% in extended trading.

Dow Jones futures appreciate ahead of the US market opening on Tuesday, trading around 44,380, up by 0.17%, during early European hours. Meanwhile, S&P 500 futures surge by 0.25% to 6,370, and Nasdaq 100 futures advance 0.33% to trade above 23,300. US ISM PMI data will be eyed later in the North American session.

US stock index futures appreciate due to the rising likelihood that the US Federal Reserve (Fed) will deliver an interest rate cut in September, following weaker labor market data that has heightened concerns over the US economic outlook. According to CME's FedWatch Tool, markets are pricing in a 91.6% chance of a 25 basis point rate cut by the Fed next month.

However, traders are expected to closely monitor US President Donald Trump as he moves to nominate a replacement for Fed Governor Adriana Kugler, who unexpectedly resigned on Monday. The new appointee may be more aligned with Trump's push for lower interest rates.

In future markets, Palantir jumped more than 4% after the AI software company surpassed second-quarter earnings expectations and raised its outlook, driven by strong demand for its AI platform. However, Hims & Hers Health tumbled around 13% after falling short of revenue estimates for the second quarter. Investors now await earnings reports on Tuesday from key names such as AMD, Pfizer, Snap, Rivian, and Yum! Brands.

On Monday's regular market, Wall Street rebounded from last week's pullback, with the Dow climbing 1.34%, the S&P 500 gaining 1.47%, and the Nasdaq Composite surging 1.95% as traders digested the latest round of corporate earnings.