U.S. stock futures declined slightly on Sunday night following a strong week on Wall Street, where the S&P 500 achieved its longest positive streak in two decades. Futures linked to the S&P 500 dropped approximately 0.4%, while Dow Jones Industrial Average futures and Nasdaq-100 futures each fell by 0.3%. The S&P 500 advanced nearly 1.5% on Friday, marking its ninth consecutive day of gains — its longest winning streak since November 2004. This recovery erased all losses since April 2, when President Donald Trump announced retaliatory tariffs. The tech-heavy Nasdaq Composite gained 1.5% on Friday, and the Dow industrials rose nearly 1.4%. Optimism regarding a potential U.S. trade deal with major partners has bolstered market sentiment. Chinese authorities have indicated they are considering initiating trade negotiations with the U.S., as reported by The Wall Street Journal. However, no official trade agreements have been announced. Ryan Dykmans, chief investment officer at Dunham & Associates Investment Counsel, noted that this market rally seems driven more by excitement than solid fundamentals or tangible changes. On the economic calendar, attention turns to the Federal Reserve’s two-day policy meeting starting Tuesday. According to the CME Group’s FedWatch tool, there is only a 3.2% chance of a rate cut. Nonetheless, traders will closely monitor any comments from the Fed or Chair Jerome Powell regarding the economic outlook amidst trade war uncertainties. Upcoming earnings reports include those from On Semiconductor, Tyson Foods, and insurance company Loews, scheduled for release before Monday’s opening bell.
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