S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock market futures edged higher on Monday, with the S&P 500 and Nasdaq 100 futures rising 0.10% and 0.20%, respectively. This upward movement can be attributed to the likelihood of a 90-day China tariff truce extension and the anticipation of key tech earnings.
The news of a potential tariff truce extension has been a significant driver of market sentiment in recent weeks. The truce, which was initially set to expire on March 1, has been extended multiple times, and traders are now expecting another extension. This has reduced concerns over a potential trade war between the US and China, allowing investors to focus on more fundamental factors such as corporate earnings and economic growth.
Speaking of corporate earnings, tech giants are set to report their quarterly results this week, with many expecting strong performance. Morgan Stanley’s Michael Wilson has forecasted strong 12-month returns, citing advancements in artificial intelligence (AI), tax breaks, dollar weakness, and possible Federal Reserve (Fed) cuts in 2026.
“The combination of AI-driven productivity gains, tax breaks, and a weaker dollar could lead to strong returns in the coming year,” Wilson said in a note to clients. “Additionally, the possibility of Fed rate cuts in 2026 could also support the market.”
Wilson’s bullish forecast is supported by recent economic data, which has shown signs of a strengthening economy. The US GDP growth rate has been steadily increasing, and the unemployment rate has remained low. Additionally, inflation has remained under control, allowing the Fed to keep interest rates low.
The tech sector has been a key driver of the market’s upward movement in recent years, and this week’s earnings reports will provide valuable insights into the industry’s performance. Many tech giants, including Apple, Amazon, and Microsoft, are expected to report strong earnings, driven by growth in cloud computing, artificial intelligence, and e-commerce.
However, not all investors are optimistic about the market’s prospects. Some have expressed concerns over the valuation of the market, which has become increasingly expensive in recent months. The S&P 500 is currently trading at a price-to-earnings ratio of over 20, which is above its historical average.
Despite these concerns, many investors remain optimistic about the market’s prospects. With the likelihood of a tariff truce extension and strong tech earnings, the market is likely to continue its upward trend in the coming weeks.
In conclusion, the S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, on Monday, driven by the likelihood of a 90-day China tariff truce extension and key tech earnings. Morgan Stanley’s Michael Wilson has forecasted strong 12-month returns, citing advancements in AI, tax breaks, dollar weakness, and possible Fed cuts in 2026.
