S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock market is poised to start the week on a positive note as traders await key tech earnings and a potential extension of the 90-day China tariff truce. S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, indicating a likely upbeat start to the week.
The news comes as markets digest the latest developments in the ongoing trade tensions between the US and China. Over the weekend, it was reported that the two nations are close to agreeing on a 90-day tariff truce extension. This news has sparked optimism among investors, who are hoping that a prolonged trade war can be avoided.
In addition to the tariff truce, tech earnings are also set to play a significant role in shaping market sentiment this week. Several major tech companies, including Amazon, Google, and Facebook, are scheduled to report their quarterly earnings. Analysts are expecting strong results from these companies, which could further boost market sentiment.
Michael Wilson, a strategist at Morgan Stanley, is one of the many market experts who is forecasting a strong performance from the US stock market over the next 12 months. In a recent note, Wilson cited several factors that he believes will support the market, including the growth of artificial intelligence (AI), tax breaks, dollar weakness, and possible Federal Reserve rate cuts in 2026.
AI, in particular, is expected to play a major role in driving growth in the US economy over the next few years. As AI technology continues to advance, it is likely to lead to significant productivity gains and increased efficiency across various industries. This, in turn, could lead to higher corporate profits and a stronger stock market.
Tax breaks are another factor that is expected to support the market. The Tax Cuts and Jobs Act, which was passed in 2017, has led to a significant reduction in corporate tax rates. This has resulted in higher profits and increased investment by companies, which could continue to drive market growth in the coming months.
Dollar weakness is another factor that is expected to support the market. A weaker dollar makes US exports more competitive, which could lead to increased demand and higher profits for companies that rely on international trade. This, in turn, could lead to higher stock prices and a stronger market.
Finally, the possibility of Federal Reserve rate cuts in 2026 is also expected to support the market. The Fed has been gradually tightening monetary policy over the past few years, but many analysts believe that it will need to loosen policy in the coming months to support the economy. This could lead to lower interest rates and increased borrowing, which could further boost the market.
In conclusion, the S&P 500 and Nasdaq 100 futures are poised to start the week on a positive note as traders await key tech earnings and a potential extension of the 90-day China tariff truce. The news comes as markets digest the latest developments in the ongoing trade tensions between the US and China, and as analysts forecast a strong performance from the US stock market over the next 12 months.
