Wall Street Extends Gains into New Week

U.S. stock futures ticked higher on Tuesday as investors positioned themselves for a pivotal week dominated by the Federal Reserve’s policy decision and fresh U.S.-China trade headlines. At 06:05 ET (10:05 GMT), Dow Jones Futures added 5 points (0.1%), S&P 500 Futures gained 14 points (0.2%), while Nasdaq 100 Futures rose 70 points (0.3%).

The cautious optimism followed Monday’s session, when both the S&P 500 and NASDAQ Composite closed at record highs, with the S&P breaking above the 6,600 level for the first time.

Fed Meeting in Focus

Markets remain firmly focused on the Federal Open Market Committee (FOMC) meeting, which begins Tuesday and concludes on Wednesday. Investors broadly expect a 25 basis-point cut, with futures pricing in near certainty of the move.

Attention will be centered on the Fed’s statement and updated economic projections, as traders seek clarity on whether this reduction marks the start of a sustained easing cycle or a one-off adjustment.

Adding to the cautious tone, U.S. retail sales data for August will be released later Tuesday. Economists forecast a 0.2% monthly increase, slowing from 0.5% in July. With signs of a cooling labor market and weakening consumer sentiment, the data could offer further insight into household resilience against tariff-driven inflation risks.

U.S.-China Trade Talks Provide Support

Sentiment was buoyed by renewed optimism over U.S.-China trade negotiations in Madrid. Reports suggested progress had been made, including a tentative framework agreement over the ownership of TikTok, with a call between President Trump and President Xi Jinping scheduled for later in the week.

These developments injected fresh risk appetite into markets, although investors remain cautious given the history of volatility surrounding trade talks.

Corporate Developments

Several corporate announcements added to market dynamics:

• Ford announced plans to cut up to 1,000 jobs in Cologne, Germany, citing weak demand for its electric vehicle production.
• Google unveiled plans to invest £5 billion ($6.8 billion) in the U.K., ahead of President Trump’s upcoming state visit, which is expected to include a range of business agreements.
• Dave & Buster’s Entertainment shares dropped premarket after disappointing quarterly earnings.
• Rocket Lab fell after announcing a $750 million stock purchase agreement, while Oscar Health slid on news of a $350 million convertible notes offering.

Market Outlook

With U.S. indices at record highs, this week’s trading is set to be defined by the Fed’s decision, retail sales performance, and ongoing geopolitical and trade developments. While optimism over monetary easing is supporting equities, lingering risks from tariffs, labor market softening, and corporate restructuring could inject volatility.