S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock market futures continued their upward trend on Monday, with the S&P 500 and Nasdaq 100 futures rising 0.10% and 0.20%, respectively. The optimism in the market was fueled by the expectation of a 90-day extension of the China tariff truce and the upcoming tech earnings season.
As the market opened, traders were optimistic about the possibility of a trade deal between the US and China, which has been a major concern for investors in recent months. The news of a potential tariff truce extension came as a relief, and the market responded positively.
Another factor contributing to the market’s upward momentum was the upcoming tech earnings season. Tech giants such as Microsoft, Alphabet, and Amazon are set to report their earnings in the coming days, and investors are eager to see how these companies have performed in recent quarters.
Morgan Stanley’s Michael Wilson was among the many analysts who forecast strong 12-month returns for the market. In a recent note, he cited several factors that he believed would drive the market higher, including the growth potential of artificial intelligence (AI), the benefits of tax breaks, the weakness of the US dollar, and the possibility of Federal Reserve interest rate cuts in 2026.
Wilson’s forecast was based on his belief that the market was undervalued and that investors were being too cautious. He argued that the market was due for a correction, and that the recent weakness was an opportunity to buy into the market.
The market’s upward momentum was also supported by the strong performance of the US economy in recent quarters. The economy has been growing steadily, and many analysts believe that it has the potential to continue growing in the coming years.
In addition to the positive economic news, the market was also supported by the strong performance of the US dollar. The dollar has been weakening in recent months, which has made it more attractive for foreign investors to invest in the US market.
The market’s upward momentum was not limited to the tech sector, however. The S&P 500 and Nasdaq 100 indexes both rose, indicating that the rally was broad-based.
The S&P 500, which is widely regarded as the benchmark for the US stock market, rose 0.10% to 3,040.50. The Nasdaq 100, which is heavily weighted towards tech stocks, rose 0.20% to 7,740.50.
The rally was not limited to the US market, however. Stock markets in Europe and Asia also rose, indicating that the optimism was global in scope.
The news of the potential tariff truce extension and the upcoming tech earnings season has sent a positive signal to investors, and the market is likely to continue its upward momentum in the coming days. As investors await the release of the tech earnings reports, they are likely to be optimistic about the prospects for the US economy and the stock market.
