Dow Jones futures climb on rising further Fed rate cut bets

• Dow Jones futures advance as market sentiment strengthens amid growing expectations of additional Fed rate cuts.
• CME FedWatch Tool prices in 95% odds of an October Fed cut and 85% for December.
• US stock indices rise as technology and semiconductor stocks gain.

Dow Jones futures added 0.13% to trade around 47,100 during European hours on Monday, ahead of the regular session opening in the United States (US). The S&P 500 futures gain 0.27% to remain above 6,750, while Nasdaq 100 futures rise 0.45% to trade around 25,100.

US index futures appreciate as the market sentiment improves amid rising odds of the US Federal Reserve (Fed) delivering rate cuts in the upcoming meetings. The CME FedWatch Tool suggests that markets are now pricing in a 95% chance of a Fed rate cut in October and an 85% possibility of another reduction in December.

US senators failed to pass spending proposals to reopen the federal government for a fourth time, extending the ongoing shutdown into a new week. The government shutdown has delayed the release of key economic data, including September's Nonfarm Payrolls report. US ADP Employment Change and Job Openings data indicate a softening labor market and strengthen expectations of an imminent rate cut.

Moreover, Fed Governor Stephen Miran doubled down on his belief that the Fed has a lot more room to cut its way to neutral interest rates. Miran also said that "I hope we'll have the needed data by the October FOMC meeting." "Policy has become much more restrictive this year."

Last week, all three major indices hit new record highs, driven by gains in technology and semiconductor stocks, following OpenAI's $6.6 billion share sale, valuing the company at $500 billion and news of a landmark partnership with South Korean tech giants Samsung and SK.