Dow Jones futures gain amid easing US-China tensions, Michigan Consumer Sentiment awaited

• Dow Jones futures edge higher as market sentiment improves amid easing US-China trade tensions.

• US indices futures advance amid increasing Fed rate cut bets for December.

• Wall Street slipped on Thursday as renewed weakness in tech and AI-related stocks dampened sentiment.

Dow Jones futures advance 0.20% to trade above 47,100 during European hours ahead of the opening of the United States (US) regular session on Friday. Moreover, the S&P 500 futures and Nasdaq 100 gained by 0.25% and 0.33%, with trading around 6,760 and 25,300, respectively. Traders would likely observe the preliminary Michigan Consumer Sentiment Index data on Friday, while the US government shutdown is restricting official data releases like Nonfarm Payrolls (NFP) and Unemployment Rate.

US index futures gain ground as market sentiment improves amid easing trade tensions between the world’s two largest economies United States (US) and China. Washington moves to suspend penalties on China’s shipbuilding sector. The Office of the United States (US) Trade Representative announced that it is seeking public input on a one-year suspension of tariffs on Chinese imports.

Market sentiment also improved amid the increasing likelihood of a US Federal Reserve (Fed) interest rate cut in December. The Fed rate cut odds increased following the Challenger Job Cuts report, which announced that companies cut over 153,000 jobs in October, marking the biggest reduction for the month in more than 20 years. Fed funds futures traders are now pricing in a 67% chance of a cut in December, down from 63% a day ago, according to the CME FedWatch Tool.

Wall Street closed lower on Thursday’s regular session as renewed pressure on tech and AI-related stocks weighed on sentiment. The Dow Jones lost 0.84%, the S&P 500 fell 1.12%, and the Nasdaq 100 slid 1.9%. All three major indexes are poised to end the week in negative territory. Major AI names drove the decline, with Nvidia down 3.7%, AMD 7.3%, and Palantir 6.8%, as investors reassessed lofty valuations amid growing concerns about a potential labor market slowdown.