Wall Street futures rise as rally extends after holiday week

Dow futures added 20 points, or 0.04%, while S&P 500 futures rose 0.32% and Nasdaq-100 futures gained 0.83% as Wall Street tried to extend a rally that carried the Dow Jones Industrial Average to fresh highs. The advance followed a holiday-shortened week in which the Dow climbed nearly 2%, the S&P 500 rose 1.8% and the Nasdaq Composite added 2.1%.

The move higher was built on a softer June jobs report that changed the interest-rate debate. Nonfarm payrolls increased by 57,000, well below the 110,000 economists expected, and unemployment held at 4.2%. That weaker reading pushed expectations for a September Federal Reserve rate hike lower, with CME FedWatch pricing falling to 55% from 64.1% after the data. Investors now have their next test on Wednesday, July 9, when the Federal Reserve releases minutes from its June meeting.

The rally has also been helped by earnings optimism as second-quarter reports begin to land. Traders are watching Delta Air Lines and PepsiCo closely for clues about consumer demand, margins and whether companies can support the market’s recent climb with stronger guidance. That matters because the S&P 500 has already posted a powerful run, rising 14.9% in the second quarter, its best quarter since 2020.

Still, the market’s tone is not broad in every corner. Semiconductor shares, which have driven much of 2026’s gains, slipped again last week: the VanEck Semiconductor ETF fell 3.2%, its second straight losing week. Even so, the semiconductor index remains up about 78% this year, underscoring how much of the market’s leadership is still tied to the AI and chip trade. Fundstrat’s Mark Newton said rotation into financials, healthcare and industrials is a positive sign and has not yet broken the wider advance.

That is the key question behind the futures gain: whether the market is broadening into a sturdier advance or merely catching a momentum-fueled bounce after a thin holiday week. Mixed trading across Asia on Monday, with Japan’s Nikkei 225 near unchanged, South Korea’s Kospi down 0.46%, Australia’s S&P/ASX 200 off 0.15%, China’s CSI 300 flat and Hong Kong’s Hang Seng up 0.81%, suggested the calm was not universal. The yen’s slide to 162.24 per dollar, after touching a 40-year low last week, added another sign that global markets are still adjusting to shifting rate expectations.