U.S. stock futures rose Sunday night as investors looked to the upcoming Federal Reserve meeting for fresh clues about interest rate cuts.

Attention was also centered on June quarterly reports from top Wall Street firms, including Apple and Microsoft, which are expected to be released in the next few days.

On Friday, Wall Street indexes surged as core personal consumption expenditures (PCE) price index data for June came in close to expectations, boosting market expectations that the Federal Reserve could begin cutting interest rates in September.

The S&P 500 closed up 1.1% to 5,459.10 on Friday, the Nasdaq Composite gained 1% to 17,357.88, and the Dow Jones Industrial Average rose 1.6% to 40,589.34.

The futures army of the above indexes saw a small gain on Sunday evening. As of 19:40 ET (00:40 GMT), S&P 500 futures were up 0.2% to 5,512.0, Nasdaq 100 futures were up 0.4% to 19,244.50, and Dow Jones futures were up 0.2% to 40,931.0.

Fed meeting will provide clear signal for rate cuts

The Federal Reserve is expected to leave interest rates unchanged at its two-day meeting, which ends on Tuesday. However, any signals from the Fed about when it will start cutting rates will be widely watched, given signs that inflation has eased in recent months.

A series of Fed members have said in recent speeches that the central bank is increasingly confident in its measures to curb inflation and does not need inflation to reach its annual 2 percent target before cutting rates.

The market is widely expected that the Fed will leave interest rates unchanged this week, but may hint at a rate cut in September. According to the Chicago Mercantile Exchange (CME) Fedwatch, traders expect the Fed to cut rates by 25 basis points in September.

Apple and Microsoft to release earnings

This week will witness earnings reports from some of Wall Street's tech giants, including Microsoft and Apple, which will release their earnings on Tuesday and Thursday, respectively.

Other notable tech companies such as Meta, Advanced Micro Devices (AMD) and Amazon will also report their results this week.

This follows a sell-off in tech stocks, driven by profit-taking and expectations of interest rate cuts, prompting investors to turn their attention to more economically sensitive sectors.

Google parent Alphabet's disappointing profit last week has made investors more cautious ahead of tech stock earnings, as investors wait to see if its investment in artificial intelligence pays off.