S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
US futures edged higher on Monday as traders looked forward to a likely 90-day extension of the China tariff truce and key tech earnings. S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, indicating a positive start to the week’s trading.
The news of a potential tariff truce extension between the US and China has been a significant factor in the market’s recent volatility. The ongoing trade tensions between the two nations have had a significant impact on global trade and the overall economy. A truce would be seen as a positive development, as it would ease concerns over a prolonged trade war and potential economic downturn.
Tech Earnings in Focus
In addition to the tariff truce, investors are also keeping a close eye on key tech earnings this week. Many major tech companies, including Alphabet, Amazon, and Facebook, are set to release their quarterly earnings reports. These reports will provide valuable insight into the companies’ financial performance and future prospects, which will likely have a significant impact on the market.
Morgan Stanley’s Michael Wilson, a renowned market strategist, has forecasted strong 12-month returns for the market, citing several factors. According to Wilson, the combination of advancements in artificial intelligence (AI), tax breaks, a weakening US dollar, and possible interest rate cuts by the Federal Reserve in 2026 will drive market growth.
“AI is a secular growth story that will continue to drive productivity and innovation,” Wilson said in a note to clients. “We also believe that the Fed will cut rates in 2026, which will be a positive for the market.”
US-China Trade Tensions Ease
The trade tensions between the US and China have been a significant source of market volatility in recent months. The two nations have been engaged in a trade war, with each imposing tariffs on the other’s goods. This has led to a decline in global trade and a slowdown in economic growth.
However, recent developments suggest that the trade tensions may be easing. Over the weekend, China and the US announced that they had reached a tentative agreement to extend their 90-day tariff truce. This extension would give the two nations more time to negotiate a permanent trade deal.
The extension of the tariff truce is seen as a positive development for the market, as it reduces the risk of a prolonged trade war and potential economic downturn. It also provides a sense of stability and predictability for investors, which can help to boost market confidence.
Stock Market Performance
The S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, indicating a positive start to the week’s trading. The S&P 500 has been trading within a narrow range over the past few weeks, with the index struggling to break above the 3,000 level.
The Nasdaq 100, which is heavily weighted towards tech stocks, has been more volatile in recent weeks. The index has been trading within a range of 8,000 to 9,000, with the current price hovering around 8,500.
Market Outlook
The market outlook remains uncertain, with many factors at play. The trade tensions between the US and China are likely to continue to be a significant source of volatility, as are the ongoing negotiations between the two nations.
The key tech earnings this week will also have a significant impact on the market. Many major tech companies are set to release their quarterly earnings reports, which will provide valuable insight into their financial performance and future prospects.
In addition, the possibility of interest rate cuts by the Federal Reserve in 2026 is seen as a positive development for the market. A rate cut would make borrowing cheaper, which could boost economic growth and drive market growth.
Conclusion
In conclusion, the S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, as traders eyed a likely 90-day China tariff truce extension and key tech earnings. Morgan Stanley’s Michael Wilson forecasted strong 12-month returns, citing AI, tax breaks, dollar weakness, and possible Fed cuts in 2026.
The market outlook remains uncertain, with many factors at play. However, the extension of the tariff truce and the key tech earnings this week are likely to provide a sense of stability and predictability for investors. As always, it is important to monitor market developments and adjust your portfolio accordingly.
