US stock futures rise on China trade de-escalation hopes; Fed on watch

From Yahoo Finance: 2025-05-07 06:19:00

U.S. stock index futures rose on hopes of easing trade tensions with China and focus on the Federal Reserve meeting. Representatives from both countries will meet in Switzerland for trade talks following weeks of tariff disputes affecting global economic growth. Markets remain uncertain with mixed signals from major economies and the Fed’s wait-and-see approach.

Dow E-minis were up 223 points, S&P 500 E-minis up 31.5 points, and Nasdaq 100 E-minis up 113.75 points. The Federal Reserve is expected to keep interest rates steady, but traders are pricing in a rate cut by July due to slowing economic data. Comments from policymakers will be closely watched for insight into monetary policy easing amid Trump’s calls for lower rates.

Market analysts anticipate a hawkish lean from Fed Chair Jerome Powell, which could affect market sentiment. Wall Street closed lower on Tuesday due to lack of clarity on trade issues. The S&P 500 remains over 8% below its February high despite recovering from April’s tariff announcement. Corporate earnings reports from Uber and Walt Disney will be closely monitored.



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