Dow Jones futures climbed 0.37%, approaching 46,550 during European trading hours on Monday, ahead of the US regular session. The S&P 500 futures gained 0.45% to trade near 6,730, while Nasdaq 100 futures rose 0.56%, breaking above 25,100 at the time of writing.

The US equity market is buoyed by signs of easing US-China trade tensions. President Donald Trump indicated that tariffs on China could be lowered, provided China meets certain conditions, particularly on agricultural purchases. Trump emphasized that he expects China to continue buying US soybeans at previous levels, signaling optimism for a partial trade resolution.

Last week, major US indices had retreated, with the Dow Jones falling 0.65%, the S&P 500 down 0.63%, and the Nasdaq 100 slipping 0.36%, pressured by renewed trade concerns, regional bank stress, and profit-taking in AI-related stocks.

Market participants are now focusing on upcoming earnings reports from key US companies, including Netflix, Coca-Cola, Tesla, IBM, and Intel, as the ongoing government shutdown has limited the availability of fresh economic data.

In addition, equities are supported by expectations of further Federal Reserve rate cuts. According to the CME FedWatch Tool, markets are pricing in nearly a 100% chance of a rate cut in October and a 96% probability of another cut in December, reinforcing investor appetite for riskier assets.

Overall, Dow Jones futures are positioned higher at the start of the week, with trade optimism and dovish monetary policy expectations underpinning market sentiment, even as traders remain cautious ahead of corporate earnings and the resolution of the government shutdown.