Stock index futures are on the rise today, with the S&P 500 and Nasdaq 100 hitting 1-week highs. Optimism surrounds Q3 earnings results and easing US-China trade tensions. Treasury Secretary Bessent announced upcoming talks between the US and China to prepare for President Trump’s meeting with Xi Jinping. Chinese economic data exceeded expectations, supporting global growth prospects. The US government shutdown continues, causing delays in key economic reports and potential job losses.

Earnings season is in focus as Q3 results pour in, with 85% of S&P 500 companies beating forecasts. Expectations are high for corporate earnings, although Q3 profits are expected to show the smallest increase in two years. Markets anticipate a 99% chance of a -25 bp rate cut at the next FOMC meeting. Overseas markets are higher, with the Euro Stoxx 50 and Japan’s Nikkei reaching record highs. Interest rates are up slightly, with T-notes reflecting ongoing US government shutdown uncertainties.

European government bond yields vary today, with Germany’s bund yield up and the UK’s gilt yield down. S&P downgraded France’s sovereign debt rating due to budget uncertainty. Swaps suggest a low chance of an ECB rate cut. Tech stocks like Apple and Meta Platforms are leading gains in US markets. Chipmakers and AI stocks are also up, alongside cryptocurrency-exposed stocks. Notable gainers include Celcuity, Cleveland-Cliffs, and Sable Offshore Corp. Lululemon Athletica and Cooper Cos. are also seeing positive movement, while AppLovin and Progressive Corp are among the decliners.

Read more at Nasdaq: Stocks Supported by Trade Hopes and Earnings Optimism