Dow Jones, Nasdaq and S&P futures flat even after record US index performances
Stock futures showed little movement Monday evening, following a strong rally in major US indexes earlier in the day. Futures tied to the Dow Jones Industrial Average edged up about 15 points, S&P 500 futures remained essentially flat, and Nasdaq 100 futures gained modestly by 0.1% as investors prepared for a critical week ahead.
The flatline followed Monday’s major US stock indexes hitting remarkable new heights. The S&P 500 closed above the 6,800 level for the first time ever, cementing its 35th record close in 2025. The Nasdaq Composite and Dow Jones Industrial Average also closed at all-time highs, fueled by strong performances in the technology sector. Additionally, the Russell 2000 small-cap index reached a new record, indicating broad market strength across different segments.
The subdued futures activity comes amid significant market catalysts, including the Federal Reserve’s two-day policy meeting starting Tuesday, where a rate cut is widely expected. Traders anticipate that Fed Chair Jerome Powell will signal the possibility of further easing at the final meeting of the year in December, driven by cooling inflation and concerns over a weakening labor market. The ongoing US government shutdown has resulted in limited economic data, adding uncertainty to the market environment.
Investor optimism is also bolstered by progress in US-China trade negotiations. Presidents Donald Trump and Xi Jinping are scheduled to meet Thursday to finalize a potential trade deal framework addressing key issues like China’s rare earth mineral export restrictions, soybean purchases, and TikTok.
Key tech giants known as the “Magnificent Seven,” including Alphabet, Amazon, Apple, Meta Platforms, and Microsoft, are set to release quarterly earnings this week. Collectively, they account for roughly 25% of the S&P 500’s market capitalization. The third-quarter earnings season has begun strongly, contributing to positive market sentiment. However, amid these upbeat earnings, Amazon announced plans to implement the largest layoffs in its history, adding complexity to the tech sector’s dynamics.
The spotlight this week is on the earnings reports from about 30 companies in the Nasdaq 100 index, which will be critical for sustaining the current rally.In after-hours trading, stocks like Nucor and Cadence Design Systems showed movement following their earnings reports, reflecting the broad market’s sensitivity to quarterly results. Overall, futures remain relatively stable as participants weigh the impact of the Fed’s policy outcome and the unfolding trade discussions.