S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock futures market edged higher on Monday, as traders reacted to the likelihood of a 90-day extension of the China tariff truce and awaited key tech earnings. S&P 500 and Nasdaq 100 futures rose by 0.10% and 0.20%, respectively, signaling a positive start to the week.
The news of a potential tariff truce has been a major driver of market sentiment in recent days. The ongoing trade tensions between the US and China have been a significant concern for investors, and any developments that suggest a resolution are likely to be well-received.
In addition to the tariff truce, traders are also keeping a close eye on the upcoming tech earnings season. Several major tech companies, including Apple, Amazon, and Microsoft, are set to report their quarterly earnings this week. These earnings reports will provide investors with valuable insights into the performance of these companies and the broader tech industry.
Morgan Stanley’s chief US equity strategist, Michael Wilson, is forecasting strong 12-month returns for the S&P 500, citing several positive factors. These include the growing adoption of artificial intelligence (AI), tax breaks, dollar weakness, and possible Federal Reserve interest rate cuts in 2026.
In an interview with CNBC, Wilson noted that AI is likely to be a major driver of growth in the coming years, as it becomes increasingly integrated into various industries. He also highlighted the benefits of tax breaks, such as the Tax Cuts and Jobs Act, which has helped to boost corporate profits.
Furthermore, Wilson believes that the weakness of the US dollar will also support the stock market, as it makes US exports more competitive and boosts the purchasing power of American consumers.
Finally, the possibility of Federal Reserve interest rate cuts in 2026 is also seen as a positive factor by Wilson. He believes that a rate cut would help to stimulate economic growth and boost the stock market.
Overall, the combination of a potential tariff truce, strong tech earnings, and positive factors such as AI, tax breaks, dollar weakness, and possible Fed cuts, are likely to support the US stock market in the coming months.
Market Highlights
- S&P 500 futures rose 0.10% to 3,444.50
- Nasdaq 100 futures rose 0.20% to 9,442.25
- Dow Jones futures rose 0.15% to 28,525.25
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