Dow Jones futures gain on improved market sentiment, awaits earnings from tech giants

• Dow Jones futures receive support from the report that US-China negotiators reached a consensus ahead of the Trump-Xi Jinping meeting.
• US stocks gain support as the Fed is widely anticipated to deliver a 25-basis-point rate cut this week.
• Traders await earnings reports from major tech giants, including Apple, Amazon, Alphabet, Meta, and Microsoft.

Dow Jones futures rise 0.65% to trade near 47,700 during European hours, ahead of the opening of the United States (US) regular session on Monday. The S&P 500 futures gain 0.84% to trade around 6,880, while Nasdaq 100 futures surge 1.13% to reach 25,800 at the time of writing.

US index futures gain ground on improved market sentiment, driven by reports that US and Chinese negotiators have reached a consensus on major disputes and paved the way for Presidents Donald Trump and Xi Jinping to meet on Thursday to finalize a trade deal.

US Treasury Secretary Scott Bessent told CBS News that President Trump's threat to impose 100% tariffs on Chinese goods "is effectively off the table." Bessent added that China has agreed to make "substantial" soybean purchases and to postpone its rare-earth export controls "for a year while they re-examine it."

US stock markets also draw support from the increased likelihood of a rate cut by the US Federal Reserve (Fed) this week, following softer recent US inflation data for September. The CME FedWatch Tool indicates that markets are now pricing in nearly a 97% chance of a Fed rate cut in October and a 96% possibility of another reduction in December.

In Friday's regular session, Wall Street closed higher, with the Dow Jones and Nasdaq 100 up over 1%, the S&P 500 gaining 0.79%. Investors now await earnings reports from major tech giants, including Apple, Amazon, Alphabet, Meta, and Microsoft.