The Swiss stock market is being supported by Nestlé's recovery as global markets adjust to the Federal Reserve's recent rate cut. This move is seen as significant due to the Fed's influence on global liquidity conditions.

Analysts note that the Fed is signaling its intention to protect the labor market from potential deterioration. This week, attention will be on remarks from several Federal Reserve policymakers, including Chairman Jerome Powell, two governors, and New York Fed President John Williams. Market participants are also closely watching US inflation data, which could provide insights into the possibility of further monetary policy easing in the near future.

Currently, the markets are pricing in a 50 percent chance of another rate cut in November, reflecting ongoing economic uncertainty.