Stock market news today: Dow set to build on rally as huge week for markets kicks off

The Dow was set to pick up on its rally on Monday, as US stock futures rose ahead of a big week filled with a Federal Reserve rate decision, the jobs report, and Big Tech earnings.

Dow Jones Industrial Average futures ( YM=F ) moved up roughly 0.4%, coming off a surge of over 650 points for the blue-chip index. S&P 500 futures ( ES=F ) also added 0.4%, while contracts on the tech-heavy Nasdaq 100 ( NQ=F ) were up roughly 0.6%.

Stocks are set to kick the week off on the front foot after surging on Friday, as investors welcomed a promising inflation reading that cemented bets for interest-rate cuts. But after a volatile run of sessions and a huge tech sell-off, the watch is on for surprises that could put the fragile rally to the test.

No move is expected from the Federal Reserve at the end of its meeting on Wednesday, despite signs the US economy and inflation have hit a sweet spot. Many on Wall Street see other reasons for the central bank to wait until September to act.

32 charts that tell the story of markets and the economy right now

The July nonfarm payrolls report that follows on Friday — expected to show cracks in the jobs market — will play into after-the-fact calculations on timing and depth of rate cuts in 2024.

Looming earnings this week from Apple ( AAPL ), Microsoft ( MSFT ), Amazon ( AMZN ) and Meta ( META ) also have investors on alert, given the stock wipeout that followed the first pair of "Magnificent Seven" results.

While they wait, investors will get a flood of quarterly results from over 150 members of the S&P 500. McDonald's ( MCD ) earnings missed across the board before the bell on Monday, as consumers pulled back on spending.