Dow Jones futures rise due to easing US-China trade tensions, Fed rate cut bets

• Dow Jones futures gain as Trump noted that tariffs on China may be lowered, but China has to do things too.
• Traders eye earnings from Netflix, Coca-Cola, Tesla, IBM, and Intel amid the government data blackout.
• US stocks receive support from the increased likelihood of two more Fed rate cuts by year-end.

Dow Jones futures advance 0.37% to rise near 46,550 during European hours, ahead of the opening of the United States (US) regular session on Monday. The S&P 500 futures rise 0.45% to trade around 6,730, while Nasdaq 100 futures gain 0.56% to break above 25,100 at the time of writing.

US index futures gain ground amid easing United States (US)-China trade tensions. US President Donald Trump noted that he wants China to buy soybeans at least in the amount they were buying before. Trump added that he believes China will make a deal on soybeans. "We can lower what China has to pay in tariffs, but China has to do things for us too," he added.

Last week, the Dow Jones slipped 0.65%, the S&P 500 dropped 0.63%, and the Nasdaq 100 declined 0.36%, weighed down by renewed trade concerns, stress in regional banks, and profit-taking in AI-related stocks. Traders now turn their focus on quarterly results from Netflix, Coca-Cola, Tesla, IBM, and Intel, as the ongoing data blackout from the government shutdown pushes markets for fresh market cues.

US stocks also draw support from the increased likelihood of further rate cuts by the US Federal Reserve (Fed). The CME FedWatch Tool indicates that markets are now pricing in nearly a 100% chance of a Fed rate cut in October and a 96% possibility of another reduction in December.