S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US futures market saw a slight uptick on Monday, as traders anticipated a likely extension of the 90-day China tariff truce and focused on key tech earnings. S&P 500 and Nasdaq 100 futures rose by 0.10% and 0.20%, respectively, signaling a positive start to the week.
The news came as a relief to investors, who have been closely following the trade tensions between the US and China. The tariff truce, which was initially set to expire on December 15, is expected to be extended, providing a much-needed reprieve to the global economy.
Meanwhile, tech earnings are set to dominate the market’s attention, with several major companies including Apple, Amazon, and Google slated to report their quarterly results. The tech sector has been a significant driver of the market’s performance in recent years, and investors will be keenly watching the earnings reports to gauge the sector’s future prospects.
Morgan Stanley’s Michael Wilson, a prominent analyst, has forecast strong 12-month returns for the US market, citing several positive factors. According to Wilson, the combination of artificial intelligence (AI), tax breaks, dollar weakness, and possible Federal Reserve interest rate cuts in 2026 will drive the market upwards.
“Artificial intelligence is a secular trend that will continue to drive growth in the US, and tax breaks will provide a significant boost to the economy,” Wilson said in a recent note to clients. “The dollar’s weakness will also provide a tailwind for US exports, and potential Fed rate cuts in 2026 will keep interest rates low, making it easier for companies to borrow money and invest in growth initiatives.”
Wilson’s forecast is based on his analysis of the macroeconomic landscape and the sector-specific trends that are likely to shape the market’s performance in the coming years. His predictions have been widely followed by investors, who are keenly watching the market’s movements for clues on how to position their portfolios.
The S&P 500 and Nasdaq 100 futures have been trending upwards over the past few weeks, driven by a combination of factors including the tariff truce, tech earnings, and the Fed’s dovish stance on interest rates. The central bank has been gradually reducing interest rates over the past few months, which has made it easier for companies to borrow money and invest in growth initiatives.
The market’s positive sentiment was also buoyed by the recent comments from US President Donald Trump, who expressed optimism about the US-China trade talks. Trump’s comments came after a meeting with Chinese Vice Premier Liu He, who is leading the Chinese delegation in the trade talks.
“The talks were very productive, and we’re making tremendous progress,” Trump said in a tweet. “China wants to make a deal, and I want to make a deal. We’ll see what happens.”
The comments from Trump and Liu He have provided a much-needed boost to the market, which has been grappling with the uncertainty surrounding the trade talks. Investors are now hoping that the two sides will be able to reach a comprehensive agreement, which will provide a significant boost to the global economy.
In conclusion, the S&P 500 and Nasdaq 100 futures rose on Monday, driven by the anticipated tariff truce extension and key tech earnings. Morgan Stanley’s Michael Wilson has forecast strong 12-month returns for the US market, citing AI, tax breaks, dollar weakness, and possible Fed rate cuts in 2026. The market’s positive sentiment was also buoyed by the recent comments from Trump and Liu He, which provided a much-needed boost to the market’s confidence.
