Traders work on the floor at the New York Stock Exchange in New York City, U.S., Sept. 29, 2026.
Jeenah Moon | Reuters
Stock futures rose on Sunday evening as traders look toward a slew of central bank decisions this week.
S&P 500 futures were up 0.4% while Dow Jones Industrial Average futures added 128 points, or 0.2%. Nasdaq-100 futures gained 0.6%.
The U.S. Federal Reserve, the European Central Bank and the Bank of Japan will all announce their rate decisions this week on Wednesday, Thursday and Friday, respectively.
Asian markets were mixed on Monday. The broad based Topix was up 0.37%, but the benchmark Nikkei 225 lost 0.2%. South Korea’s Kospi declined 0.3%, while the the small-cap Kosdaq saw a larger loss, dropping 1.18%.
Australia’s S&P/ASX 200 was 0.26% lower.
Oil prices were lower on Monday in Asia, with Brent futures falling 1.31% to trade at $115.19 a barrel while U.S. West Texas Intermediate slid 1.5% to $101.83 per barrel.
Brent crude had hit its highest level since April last Friday amid news reports that the U.S. and Israel could be planning to launch strikes on Iran after the midterm elections.
Higher oil prices and a broadening sell-off that hit many market sectors dragged the three major averages to losses on Friday. The Dow fell more than 650 points, while the S&P 500 lost 0.5%. The Nasdaq Composite dropped 0.2%
The sell-off also dragged the S&P 500 and the Nasdaq to back-to-back weekly losses.
France, whose 10-year bond yield touched 5% last week for the first time since 2002, got a reprieve from recent turmoil after Moody’s decided to maintain its Aa3 credit rating and negative outlook on the nation. Traders feared that the nation, the second-largest economy in the euro zone, would be heading for a downgrade amid its surging borrowing costs.
“A significant and sustained fiscal effort will still be needed beyond the presidential elections of April and May 2027 to bring France’s public finances onto stronger footing and stabilise a debt burden that will exceed 120% of GDP in 2027,” the agency said Friday.
Moody’s added it could upgrade France’s outlook to stable if the country’s institutions can reduce the deficit.
Traders are awaiting the Federal Reserve’s decision on Wednesday. Fed funds futures trading suggests a 90% likelihood that policy makers will hold interest rates at the current target range of 3.75% to 4%.
Bank of America expects the Federal Reserve will raise rates by a quarter percentage point, noting it would be a “heavy lift” move.
“The Oct decision will be a test of Chair Warsh’s resolve to bring ‘sea change’ to the Fed’s forward guidance strategy,” said Bank of America economist Claudio Irigoyen in a research note. “Warsh’s challenge at the presser will be to head off a ‘policy error’ trade. If the Fed hikes, investors might worry about overtightening. If the Fed holds, markets could question the Fed’s inflation-fighting credibility.”
Asia markets are mixed to start the week
Asia markets were mixed across the board on Monday, with Japan’s Topix gaining in early Asia trade as other gauges retreated.
The broad based Topix was up 0.37%, but the benchmark Nikkei 225 lost 0.2%.
South Korea’s Kospi declined 0.3%, while the the small-cap Kosdaq saw a larger loss, dropping 1.18%.
Australia’s S&P/ASX 200 was 0.26% lower.
— Lim Hui Jie
Asia-Pacific markets set to start the week of central bank decisions mixed
Asia-Pacific markets face a mixed start to the week as investor focus on key central bank decisions and the Fifth Plenum meeting out of China.
The U.S. Federal Reserve, the European Central Bank and the Bank of Japan will all announce their rate decisions this week on Wednesday, Thursday and Friday, respectively.
Futures for Japan’s Nikkei 225 in Chicago were at 63,030, while in Osaka they were last at 62,640 compared with the index’s previous close of 62,693.16.
Futures for Hong Kong’s Hang Seng index last traded at 23,110, compared with the index’s last close of 23,093.37.
Australia’s S&P/ASX 200 was down 0.79% in early trading.
— Lim Hui Jie
Asia-Pacific markets set for subdued open with focus on central bank decisions
Asia-Pacific markets are set to start the week mixed as investors focus on key central bank decisions, China’s fifth plenum, and developments in the Middle East.
The U.S. Federal Reserve, European Central Bank and the Bank of Japan will all announce their rate decisions this week, with the Fed on Wednesday stateside, the ECB on Thursday, and the BOJ on Friday.
Futures for Japan’s Nikkei 225 in Chicago were at 63,030, while in Osaka they were last at 62,640 compared with the index’s previous close of 62,693.16.
Futures for Hong Kong’s Hang Seng index last traded at 23,110, compared with the index’s last close of 23,093.37.
Australia’s S&P/ASX 200 was down 0.79% in early trading.
— Lim Hui Jie
Big Tech earnings are on deck this week, with Microsoft and Alphabet ready to report
A slate of companies that could sway the market are set to deliver their quarterly reports this week.
Alphabet and Microsoft are due to report on Wednesday after the closing bell. Traders will be paying close attention to what’s ahead on the artificial intelligence front with both companies as the AI trade undergoes turbulence.
With respect to Microsoft, Piper Sandler analyst Billy Fitzsimmons said, “Our 3Q partner checks were strong, with MSFT’s net results inflecting higher and demand for prepackaged AI solutions leading the list.”
Amazon, the e-commerce and cloud giant, is poised to report Thursday afternoon. In the prior quarter, the company lifted its capital expenditures forecast, forecasting they would hit $220 billion this year.
Read more from CNBC’s Caleigh Keating on what to expect from companies reporting this week.
—Darla Mercado
Oil prices slip on Sunday evening
Smoke and flames rise from King Khalid Airport, after Yemen’s Iran-backed Houthis said they attacked the airport, in Riyadh, Saudi Arabia, October 8, 2026, in this screengrab obtained from a social media video.
Social Media/via Reuters
Oil prices cooled slightly on Sunday evening, lending support to U.S. equity futures.
Brent futures fell 1.1 % to trade at around $115 a barrel while U.S. West Texas Intermediate slid 1.2% to roughly $102 per barrel. This comes after Brent crude settled at its highest level since April last Friday amid news reports that the U.S. and Israel could be planning to launch strikes on Iran after the midterm elections.
On Sunday, Saudi Arabia said it intercepted drones and missiles from the Iran-backed Houthis. Fighting between Riyadh and the Yemen-based Houthis, along with speculation of upcoming strikes against Iran after the midterms, have pushed oil prices higher.
— Ananya Chetia