U.S. stock futures rose Monday evening, setting the tone for Tuesday’s session as investors awaited the Federal Reserve’s policy decision and a packed slate of corporate earnings. The move followed a mixed performance in global markets, with traders weighing economic data and central bank signals for clues on the trajectory of interest rates.

Markets Hover Near Record Levels

The S&P 500 and Nasdaq Composite both closed at fresh record highs on Monday, driven by renewed optimism in technology and growth sectors. The Dow Jones Industrial Average also gained modestly, supported by cyclical stocks ahead of key data releases later in the week.

Investors are treading carefully, balancing enthusiasm for strong corporate balance sheets against lingering uncertainty over how soon the Fed might begin cutting rates. With the central bank’s decision due Wednesday, markets are pricing in a steady policy stance for now but remain sensitive to any shift in tone from Chair Jerome Powell’s remarks.

Focus Turns to Earnings and Fed Policy

The earnings calendar is in full swing this week, with major names across technology, consumer, and industrial sectors set to report. Analysts expect these updates to offer a clearer view of profit margins, capital spending, and how companies are navigating higher borrowing costs.

While inflation pressures have moderated, investors are still assessing how resilient corporate demand will remain into year-end. The combination of solid labor data and softer inflation readings has fueled optimism that the economy can sustain moderate growth without reigniting price pressures — a so-called “soft landing” scenario the Fed has aimed to achieve.

Global Cues and Reduced Market Liquidity

Overseas, European and Asian markets traded with limited momentum, reflecting investor caution ahead of U.S. policy developments. Some analysts noted that reduced liquidity in parts of Asia and Europe during the latter half of the session contributed to muted volatility.

In commodities, oil prices steadied after recent gains, while gold slipped slightly as the U.S. dollar held firm. Treasury yields hovered near recent lows, signaling cautious positioning ahead of Wednesday’s rate announcement.

Outlook: All Eyes on the Fed and Forward Guidance

The next 48 hours could set the tone for markets into November. Investors will be closely watching Powell’s post-meeting comments for hints about the timing of future rate cuts and the central bank’s assessment of recent inflation data.

Beyond monetary policy, corporate earnings and macro data — including consumer confidence and employment indicators — will shape sentiment. Any surprise on either front could test the durability of the rally that pushed U.S. indexes to all-time highs.