Dow Jones futures rise due to rising odds of Fed multiple rate cuts

• Dow Jones futures may appreciate further due to improved market sentiment.
• The CME FedWatch Tool indicates roughly an 89% probability of a Fed rate cut at the September meeting.
• Key companies, including Rumble, Owens & Minor, and AMC Entertainment, are scheduled to release their quarterly results on Monday.

Dow Jones futures remain higher during early European hours, ahead of the regular market opening in the United States (US) on Monday, trading above 44,300, up by 0.12%. However, S&P 500 futures are steady near 6,400, and Nasdaq 100 futures fall 0.11% to trade around 23,700.

US stock futures may appreciate due to improved market sentiment, driven by the rising odds of the Federal Reserve (Fed) delivering multiple rate cuts by the end of this year. Markets are now pricing in approximately 89% odds of a Fed rate cut at the September meeting, up from 80% a week ago, according to the CME FedWatch tool.

The higher Initial Jobless Claims and lower July's Nonfarm Payrolls in the United States (US) have boosted the expectations for a Fed rate cut next month, with another possible move in December. Tuesday will likely see US consumer inflation data due on Tuesday. Focus will be shifted toward Thursday's preliminary UK Q2 GDP print and the US Producer Price Index (PPI). These data points may offer further impetus on the United States (US) economic conditions and shape future Fed policy outlook.

On Fedspeak, Fed Governor Michelle Bowman stated on Saturday that three interest rate cuts are likely to be appropriate this year. St. Louis Fed President Alberto Musalem noted on Friday that US economic activity remains stable but warned of potential risks ahead, noting the Fed could fall short on both its inflation and employment goals, with particular downside risks to jobs.

Last week, the Dow Jones ended on a strong note, lifted by a rally in Apple that helped boost the broader market. The Nasdaq Composite closed at new record highs, while the S&P 500 finished just shy of another milestone. These gains came as robust corporate earnings fueled market momentum, with investors largely brushing off the impact of US President Donald Trump's sweeping retaliatory tariffs. Key companies set to report quarterly results on Monday include Rumble (RUM), Owens & Minor (OMI), and AMC Entertainment (AMC).