S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
US futures edged higher on Monday as traders welcomed a likely 90-day extension of the China tariff truce and looked ahead to key tech earnings. S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, as investors sought to capitalize on the positive sentiment.
The tariff truce, which was agreed upon by US President Donald Trump and Chinese President Xi Jinping during their meeting at the G20 summit in June, has been extended for another 90 days, giving both countries more time to negotiate a more comprehensive trade deal. The truce has been seen as a major positive for the global economy, as it has helped to reduce tensions and avoid a potential trade war.
Meanwhile, tech earnings are set to take center stage this week, with several major companies including Microsoft, Alphabet, and Amazon set to report their quarterly results. The sector has been a major driver of the market’s recent gains, and investors will be looking for signs that the trend is set to continue.
In a note to clients, Morgan Stanley’s Michael Wilson forecast strong 12-month returns, citing AI, tax breaks, dollar weakness, and possible Fed cuts in 2026. Wilson’s optimism is a welcome respite for investors, who have been grappling with the uncertainty surrounding the trade war and its potential impact on the global economy.
“The key question is whether the current rally is sustainable or just a short-term bounce,” Wilson wrote. “We believe the latter, but with some important caveats. The catalysts are in place for a strong 12-month return, including the rise of AI, tax breaks, dollar weakness, and possible Fed cuts in 2026.”
Wilson’s forecast is likely to be music to the ears of investors, who have been seeking a reason to get back into the market. The S&P 500 has been stuck in a tight trading range for several weeks, and a strong earnings season could be just what the market needs to break out of its funk.
In addition to the tech earnings, investors will also be keeping a close eye on the economic calendar, which is packed with a range of important data releases. On Tuesday, the US is set to release its latest GDP figures, which are expected to show a slight slowdown in growth. However, investors will also be looking for signs of strength in the labor market, with the latest jobs report set to be released on Friday.
The combination of a likely tariff truce extension and strong tech earnings could be just what the market needs to get back on track. As investors look to the future, they will be seeking signs of stability and growth, and the current environment could provide the perfect storm of positive sentiment.
