Stock Futures

Stock futures are contracts that show where investors expect stock indexes to trade in the future. In simple terms, stock futures give an early signal about whether the stock market may open higher or lower. Stock futures are important because they trade before the regular stock market opens and can react quickly to overnight news, earnings, economic data, or global events. For example, if S&P 500 futures rise before the market opens, investors may expect U.S. stocks to open higher. Stock futures do not guarantee what will happen during the regular trading day. The market can change direction after trading begins.