U.S. stock index futures signaled a slightly firmer start on Monday, suggesting equities may build on the modest advance seen at the end of last week.

Early upside momentum is being supported by renewed optimism around the interest-rate outlook as investors brace for the Federal Reserve’s policy announcement later this week.

The Fed is broadly expected to deliver another 25-basis-point rate cut on Wednesday, putting traders on alert for any guidance about what may follow in early 2026.
According to CME Group’s FedWatch tool, markets are pricing an 89.2% probability of a quarter-point cut this week, but only a 70.3% chance that policymakers will repeat the move at the January meeting.

Stocks showed a mild upward bias on Friday following a flat, choppy session on Thursday. That move helped lift both the Nasdaq and the S&P 500 to their highest closes in a month.
Although the major averages retreated from early highs, they still ended in the green:

• Dow Jones Industrial Average: +104.05 points (+0.2%) to 47,954.99
• Nasdaq Composite: +72.99 points (+0.3%) to 23,578.13
• S&P 500: +13.28 points (+0.2%) to 6,870.40

On a weekly basis, the Nasdaq gained 0.9%, the Dow rose 0.5%, and the S&P 500 advanced 0.3%.

Friday’s strength followed the release of the Federal Reserve’s preferred inflation measure, which largely aligned with forecasts.
The Commerce Department reported the PCE price index increased 0.3% in September—matching both August’s rise and economist expectations.
Year-over-year, PCE inflation ticked up to 2.8% from 2.7%.

Core PCE, which excludes food and energy, rose 0.2% for a third consecutive month. The annual rate eased slightly to 2.8% from 2.9%, defying expectations for no change and reinforcing hopes that inflation is cooling enough to justify further policy easing.

Even so, buying enthusiasm remained limited, as traders had already assumed the Fed was preparing to cut rates again.

Sector moves on Friday were mixed:

• Computer hardware stocks extended Thursday’s rally, with the NYSE Arca Computer Hardware Index jumping 1.7%.
• Airline stocks posted solid gains as the NYSE Arca Airline Index climbed 1.5%.
• Networking, semiconductor, and software names also outperformed.
• In contrast, steel stocks came under marked selling pressure.

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