S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock futures market witnessed a gentle upward move on Monday, driven by the anticipation of a potential 90-day extension of the China tariff truce and key tech earnings. The S&P 500 and Nasdaq 100 futures rose by 0.10% and 0.20%, respectively, indicating a positive start to the week.
The market’s optimism is largely attributed to the ongoing trade negotiations between the United States and China. The two nations have been engaged in a trade war for the past year, with both sides imposing tariffs on each other’s goods. However, in recent weeks, there have been signs of a possible breakthrough, with both sides expressing a willingness to reach a deal.
In a recent interview, Morgan Stanley’s Chief US Equity Strategist, Michael Wilson, expressed his optimism about the market’s prospects over the next 12 months. Wilson attributed his bullish forecast to several factors, including the growing adoption of artificial intelligence (AI), the benefits of tax breaks, the weakness of the US dollar, and the possibility of interest rate cuts by the Federal Reserve in 2026.
Wilson’s comments have sparked renewed interest in the market, with investors looking to capitalize on the potential upside. The tech sector, in particular, has been a focus of attention, with several major players set to report their earnings in the coming days.
Among the tech giants set to report, Apple Inc. is expected to release its earnings on Tuesday, followed by Facebook Inc. and Amazon.com Inc. on Wednesday. The sector’s performance will be closely watched, as it has been a key driver of the market’s recent gains.
In addition to the tech sector, the market is also awaiting the release of inflation data for August. The Consumer Price Index (CPI) is expected to rise by 0.2%, following a 0.1% increase in July. The core CPI, which excludes food and energy prices, is expected to rise by 0.2% as well.
The market’s performance on Monday was also influenced by the release of economic data from the European Union. The EU’s economic growth slowed to 1.2% in the second quarter, down from 1.4% in the previous quarter. The data has sparked concerns about the region’s economic prospects, with investors looking to the US for guidance.
Despite the uncertainty, the market’s overall tone remains positive. The S&P 500 and Nasdaq 100 have both risen by around 10% over the past month, driven by the optimism surrounding the trade talks and the tech sector’s strong performance.
In conclusion, the US stock futures market has edged higher on Monday, driven by the anticipation of a potential 90-day extension of the China tariff truce and key tech earnings. The market’s optimism is largely attributed to the ongoing trade negotiations and the growing adoption of AI. As the market continues to navigate the uncertainty surrounding the trade talks and inflation data, investors will be looking to the tech sector’s earnings for guidance.
