S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock market futures edged higher on Monday, as traders anticipated a likely 90-day extension of the China tariff truce and eagerly awaited key tech earnings reports. The S&P 500 and Nasdaq 100 futures rose by 0.10% and 0.20%, respectively, indicating a positive start to the week.
The latest development in the trade war between the United States and China has lifted market sentiment, as investors hope for a prolonged period of reduced tensions. The 90-day tariff truce, which was initially established in September, is set to expire on December 15. However, both countries have indicated their willingness to extend the agreement, which has helped to ease concerns about a potential trade war escalation.
In addition to the tariff truce, investors are also keeping a close eye on tech earnings reports, which are expected to provide valuable insights into the sector’s performance in the fourth quarter. Some of the biggest names in the tech industry, including Amazon, Google, and Facebook, are set to release their quarterly results, which could have a significant impact on the overall market.
Morgan Stanley’s Michael Wilson, a prominent market strategist, has forecast strong 12-month returns for the US stock market, citing several factors that could drive growth. These include the increasing adoption of artificial intelligence (AI) in various industries, tax breaks, a weaker US dollar, and potential interest rate cuts in 2026.
According to Wilson, the current market environment is characterized by a rare combination of factors that could lead to robust returns. “The combination of AI, tax breaks, dollar weakness, and possible Fed cuts in 2026 is a rare alignment of the stars that could drive strong returns over the next 12 months,” he said in a recent note to clients.
The Dow Jones Industrial Average has already reached new highs, and the S&P 500 is not far behind. The index is currently trading around 3,200, which is just 2% below its all-time high. The Nasdaq Composite, which is heavily weighted towards tech stocks, has also broken through its previous high, reaching levels not seen since 2000.
Despite the positive sentiment, some analysts are warning about the potential risks associated with the market’s recent rally. “The market is getting ahead of itself, and investors should be cautious about the potential for a correction,” said Peter Boockvar, chief investment strategist at Bleakley Advisory Group. “The fact that the Fed is not raising interest rates and the government is not raising taxes has created a perfect storm for the market to keep going up.”
In the meantime, investors will be closely monitoring the tech earnings reports, which are expected to provide a clearer picture of the sector’s performance. The reports will also give investors an opportunity to assess the companies’ guidance for the upcoming quarter, which could have a significant impact on the overall market.
In conclusion, the S&P 500 and Nasdaq futures rose on Monday, as traders eyed a likely 90-day extension of the China tariff truce and key tech earnings reports. While some analysts are warning about the potential risks associated with the market’s recent rally, Morgan Stanley’s Michael Wilson remains bullish, forecasting strong 12-month returns for the US stock market.
