The stock market opened the week on a positive note, though uncertainty looms due to political events and the upcoming Federal Reserve meeting.
Markets Open with Optimism
The stock market started the week cautiously optimistic. Dow Jones futures rose by 57 points, while S&P 500 futures gained 0.14%. After two consecutive weeks of growth, investors remain confident. Small-cap stocks jumped over 3% last week, showing interest in growth even in a choppy environment.
The earnings season is winding down; however, major retailers such as Walmart, Home Depot, and Target still have reports to release. So far, more than 80% of S&P 500 companies have beaten expectations, keeping optimism alive. Yet, all eyes are on the Federal Reserve.
Asian Stocks Rise Amid Political News
Asian markets traded mostly higher on Monday. Japan’s Nikkei 225 gained nearly 1%, while China’s CSI 300 climbed 1.5%, reaching its highest level since October 2024. Political events cast a heavy shadow on investor sentiment. U.S. President Donald Trump is poised to meet Ukraine’s Volodymyr Zelenskyy and European leaders in Washington, raising concerns about prolonged conflict impacting global growth.
Europe Eyes Gains from Trump-Zelensky Meeting
European stock market futures also pointed higher at the open. The U.K.’s FTSE, Germany’s DAX, and France’s CAC 40 all saw gains of around 0.2%. Leaders from Germany, France, and the U.K. are meeting Zelenskyy in Washington for talks with Trump. Negotiations carry significant pressure, as strong demands are placed on Ukraine to strike a deal.
The stock market shows continued growth, yet the uncertainties surrounding political and economic events keep investors cautious. The outcome of the Trump-Zelensky negotiations along with data from the Fed meeting will significantly influence further market movements.
