According to CME Group's FedWatch tool, traders assign a 63% probability to a 25 basis point rate hike at the Fed's September meeting.
At 7:26 a. m.
ET, Dow E-minis were up 209 points (0.4%), S&P 500 E-minis rose 45.5 points (0.62%), and Nasdaq 100 E-minis gained 365.5 points (1.34%), signaling early market optimism.
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Other notable stock movements included Qualcomm dropping 4.2% after forecasting fourth-quarter profits below estimates and expecting faster-than-anticipated revenue declines from Apple products.
Cybersecurity firm Fortinet's shares rose 11.3% after raising its annual revenue forecast, reflecting strong enterprise spending amid increasing data security concerns.
Starbucks climbed 6.5% following an upward revision of its annual sales and profit forecasts.
Nearly half of S&P 500 companies have reported second-quarter results, with 85.2% beating analysts' profit estimates, exceeding the average 68% beat rate, according to LSEG IBES data.
Market conditions remain fragile as significant declines in leading AI beneficiaries have unsettled investors. South Korea's KOSPI fell 1.23%, marking its third consecutive day of losses.
"We don't think the AI story is over by any means, but clearly there's scope for bumps along the way," said Sanjiv Tumkur, head of equity research at Rathbones.
Europe's STOXX 600 benchmark gained 0.48%, while the MSCI All Country World Price Index edged up 0.11% after two sessions of losses.
Renewed tensions in the Middle East complicate market outlooks, raising concerns about the inflationary impact of rising oil prices, which have climbed above US$92 per barrel after a recent decline helped contain June inflation.
