The stock market has been buzzing with activity, with Wall Street inching higher ahead of a week filled with significant events such as the Federal Reserve rate decision, the monthly jobs report, and earnings from tech heavyweights. However, one event that has caught the attention of investors is Tesla’s recent move in China.

Futures on the S&P 500 and the tech-heavy Nasdaq 100 were both up roughly 0.2% as Tesla shares surged amid upbeat China news. This comes after Tesla CEO Elon Musk’s surprise visit to China, which brought immediate benefits for the electric vehicle maker. Tesla cleared two significant barriers to rolling out its Full Self Driving software in the country, leading to a nearly 10% rise in its shares in premarket trading.

This development is seen as a potential solution to Tesla’s sales slump in the Chinese market, a crucial area for the company’s growth. The deal with Baidu, a Chinese internet giant, has been viewed positively by investors, leading to a 6% increase in Baidu’s US-listed stock.

However, the market is also closely watching the Federal Reserve’s policy decision at the end of its two-day meeting on Wednesday. There is confusion over whether the cooling in inflation has stalled and what any persistence in price pressures implies for interest-rate cuts. While the central bank is expected to hold rates steady at a 23-year high, debate is raging over the timing and even likelihood of a cut in 2024.

In conclusion, Tesla’s recent moves in China have had a positive impact on the S&P 500 futures, reflecting the interconnected nature of global markets. As the week progresses, investors will be keenly watching the Federal Reserve’s decisions and the performance of other tech giants.