S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
US futures edged higher on Monday, with S&P 500 and Nasdaq 100 futures rising 0.10% and 0.20%, respectively, as traders anticipate a likely 90-day extension of the China tariff truce and key tech earnings. The broader market sentiment has been boosted by the optimism surrounding a potential trade deal and the possibility of interest rate cuts in the near future.
The S&P 500 and Nasdaq 100 futures have been climbing steadily since the start of the year, driven by a combination of factors including the Federal Reserve’s dovish stance on interest rates, a strong US jobs market, and a decline in global trade tensions. The recent tariff truce between the US and China has also provided a boost to the markets, as investors see it as a positive sign for trade negotiations.
Morgan Stanley’s Michael Wilson, a well-known stock market strategist, has forecast strong 12-month returns for the US stock market, citing several factors that are likely to drive growth. According to Wilson, the adoption of artificial intelligence (AI) technology is expected to continue to drive growth in the tech sector, while tax breaks and a weaker US dollar are also likely to benefit the market.
In addition, Wilson believes that the Federal Reserve may cut interest rates in 2026, which could further boost the stock market. The Fed has been keeping a close eye on inflationary pressures and has been cautious about increasing interest rates too quickly, which has led to a decrease in bond yields and a subsequent rise in stock prices.
The tech sector is likely to be a key driver of market growth in the coming months, with several major companies including Apple, Amazon, and Alphabet set to report their earnings in the coming days. Tech stocks have been a major driver of the market’s gains in recent years, and strong earnings from these companies could continue to propel the sector forward.
Meanwhile, the China tariff truce has provided a boost to the markets, as investors see it as a positive sign for trade negotiations. The truce has been extended several times in the past year, and investors are hopeful that a permanent deal will be reached soon.
The US-China trade war has had a significant impact on global trade and has led to concerns about the potential for a global recession. However, the recent tariff truce has provided a sense of relief for investors, who are hopeful that a deal will be reached soon.
In conclusion, the S&P 500 and Nasdaq 100 futures have risen 0.10% and 0.20%, respectively, as traders eye a likely 90-day China tariff truce extension and key tech earnings. Morgan Stanley’s Michael Wilson has forecast strong 12-month returns for the US stock market, citing a combination of factors including AI, tax breaks, dollar weakness, and possible Fed cuts in 2026.
The tech sector is likely to be a key driver of market growth in the coming months, with several major companies set to report their earnings in the coming days. The China tariff truce has also provided a boost to the markets, as investors see it as a positive sign for trade negotiations.
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