S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock market futures edged higher on Monday, as investors looked forward to a likely 90-day extension of the China tariff truce and key tech earnings. The S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively.
The tariff truce, which has been in place since December, is set to expire on March 1. However, there are expectations that the US and China will agree to extend it, which could alleviate concerns about a potential trade war. The extension is seen as a positive development for the global economy, as a trade war would have significant implications for businesses and investors.
The tech sector, which has been a driving force behind the market’s gains in recent years, is also set to report earnings this week. Investors are eagerly anticipating the results, which could provide insight into the sector’s future prospects. Some of the biggest tech companies, including Alphabet, Amazon, and Facebook, are set to report their earnings this week.
In a note to clients, Morgan Stanley’s Michael Wilson forecast strong 12-month returns for the market, citing several factors. These include the growing adoption of artificial intelligence (AI), tax breaks, the weakness of the US dollar, and the possibility of interest rate cuts in 2026.
Wilson noted that the market has been relatively calm in recent months, despite the uncertainty surrounding the trade war. He attributed this to the fact that investors have become more risk-averse, and are willing to hold onto their assets rather than taking on more risk.
However, Wilson also warned that the market could be due for a correction. He noted that the S&P 500 has been trading at a relatively high level, and that there are signs of overvaluation in certain sectors.
Despite these concerns, many investors remain optimistic about the market’s prospects. The S&P 500 has risen by over 20% in the past year, and many analysts expect it to continue to rise in the coming months.
In addition to the tariff truce and tech earnings, investors will also be keeping a close eye on other economic indicators. These include the US jobs report, which is set to be released on Friday, and the Federal Reserve’s monetary policy meeting, which is set to take place next week.
The jobs report is expected to show that the US economy added a significant number of jobs in January, which could provide further evidence of the economy’s strength. The Federal Reserve, on the other hand, is likely to maintain its current interest rate policy, but may provide some insight into its future plans.
Overall, the market is expected to be relatively quiet this week, with investors focusing on the tariff truce and tech earnings. However, there are also signs that the market could be due for a correction, and investors should be prepared for any volatility that may arise.
