Investors Brace for Impact: Rate Cuts, Tensions, and Earnings in Focus

U.S. stock indexes are set to open lower as investors adjust expectations for Federal Reserve rate cuts amid ongoing geopolitical tensions. Treasury yields are up, pressuring tech stocks, while energy shares gain due to rising crude prices. Third-quarter earnings and critical inflation data await this week.

U.S. stock indexes are preparing to open on a lower note Monday, as investors adjust their outlooks on impending Federal Reserve rate cuts amid geopolitical tensions and upcoming key inflation data, policymaker addresses, and third-quarter earnings.

Currently, there's an over 88% likelihood of a 25 basis point rate cut in the Fed's November meeting, as indicated by CME's FedWatch tool. This week's focus will also be on crucial consumer price index data and remarks from Federal Reserve officials.

The geopolitical landscape is further exacerbated by escalating tensions in the Middle East, following attacks on Israel. The financial markets will closely monitor these developments alongside third-quarter earnings releases, including major banks starting October 11.

(With inputs from agencies.)