Wall Street futures rise on AI optimism and US-China truce

2025 – Wall Street futures rose on Monday, starting November on firmer ground on optimism about AI demand and a U.S.-China trade peace.

The benchmark S&P 500 posted its sixth straight monthly gain in October, its longest such gain in four years, while the tech-heavy Nasdaq posted its longest gain since January 2018 after all the so-called “Magnificent Seven” companies that have reported earnings so far pointed to a rise in AI spending.

Investors will have more clues about AI demand as semiconductor companies like Advanced Micro Devices and Qualcomm report results this week.

US President Donald Trump said AI giant NvidiaChina’s most advanced chips are reserved for U.S. companies and kept away from China and other countries. Shares of Nvidia rose 1.6% in premarket trading.

Trump and Chinese President Xi Jinping agreed last week to ease tensions, including a one-year postponement of mutual tariffs, but the agreement did little to address the deeper rift between the world’s two economic superpowers.

As of 6:04 a.m. ET, the Dow E-minis were up 48 points, or 0.1%, the S&P 500 E-minis were up 25.25 points, or 0.37%, and the Nasdaq 100 E-minis were up 152.5 points, or 0.59%.

PRIVATE ECONOMIC DATA EXPECTED

This week’s focus is on private sector economic data to gauge the health of the economy, with the second-longest U.S. government shutdown adding to data fog and monetary policy uncertainty.

Investors will be closely watching ADP’s private payroll data on Wednesday for signs of the health of the labor market, especially after Fed Chairman Jerome Powell last week dampened optimism about a rate cut in December.

A number of Fed officials expressed unease over the central bank’s decision to cut interest rates last week, even as Fed Governor Christopher Waller advocated for further easing to support a weakening labor market.

According to CME Group’s FedWatch tool, traders now expect a 69% chance of a 25 basis point rate cut in December, lower than the 90% priced in a week earlier.

Meanwhile, the U.S. Supreme Court will hear a case on Wednesday over the legality of Trump’s tariffs after a lower court said the administration overstepped its authority by imposing levies under a law intended for emergencies.

Before the bell, Berkshire Hathaway’s Class B shares rose 1.4% afterward Warren BuffettThe group reported higher profits for the third quarter.

Data storage companies rose after a report said Samsung pushed back pricing on its DDR5 contract to mid-November.