US stock futures experienced a rally on Monday, rebounding from a significant sell-off last week. S&P 500 and Dow Jones Industrial Average futures each rose around 0.6%, while Nasdaq 100 contracts increased nearly 0.7%. This recovery follows a challenging week marked by mixed Big Tech earnings results.
The focus of the market now shifts to the Federal Reserve's policy decision and Apple (NASDAQ:AAPL)'s earnings report. The Fed is expected to maintain its "wait-and-see" approach in Wednesday's decision, given the rise in its preferred inflation metric. This stance, often referred to as "higher for longer", indicates that the central bank is anticipated to keep interest rates steady for an extended period.
In addition to the Fed's decision, the market is also awaiting Apple's quarterly results set for release on Thursday. As the largest entity in the S&P 500, Apple's performance often has a substantial impact on the index. The potential effects of China's restrictions on iPhone usage will be closely analyzed in these results.
In other news, McDonald's (NYSE:MCD) Q3 earnings have exceeded estimates, demonstrating the resilience of the US consumer despite high borrowing costs. This development provides a positive signal amidst concerns over market volatility and economic uncertainty.
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