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 China tariff truce extension and key tech earnings. The S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20% respectively, signaling a positive start to the week for the markets.
The news of a potential tariff truce extension between the US and China has been a major boost to the markets. The two countries have been engaged in a trade war for over a year, with tariffs imposed on billions of dollars’ worth of goods. The truce, if extended, would provide a much-needed respite to the markets and could potentially lead to an increase in global trade.
The tech sector is also expected to be in focus this week, with several major companies set to report their earnings. The likes of Apple, Microsoft, and Alphabet are expected to post strong results, driven by strong demand for their products and services. The tech sector has been a major driver of the market’s gains in recent years, and any signs of weakness could have a significant impact on the broader market.
Morgan Stanley’s Michael Wilson has forecast strong 12-month returns for the market, citing several factors that could drive growth. These include the increasing adoption of artificial intelligence (AI) technology, tax breaks, a weakening US dollar, and possible Federal Reserve rate cuts in 2026.
“AI is a game-changer,” Wilson said in a note to clients. “It’s not just about the technology itself, but about the productivity gains and the creation of new industries that will arise from it.”
Wilson also highlighted the impact of tax breaks on the market. The US corporate tax rate was cut from 35% to 21% in 2017, and this has led to a surge in corporate profits and share buybacks.
“The tax cuts have been a huge boon to the market,” Wilson said. “They’ve increased corporate profits, and that’s led to a surge in share buybacks and M&A activity.”
The weakening US dollar is also expected to have a positive impact on the market. A weaker dollar makes US exports cheaper and more competitive, which could lead to an increase in global trade and economic growth.
Finally, Wilson believes that the Federal Reserve could cut interest rates in 2026, which would provide a further boost to the market.
“When the Fed cuts rates, it’s like a shot of adrenaline for the market,” Wilson said. “It makes borrowing cheaper, and that leads to an increase in spending and investment.”
In conclusion, the S&P 500 and Nasdaq futures rose on Monday as traders eyed a likely 90-day China tariff truce extension and key tech earnings. The tech sector is expected to be in focus this week, with several major companies set to report their earnings. Morgan Stanley’s Michael Wilson has forecast strong 12-month returns for the market, citing several factors that could drive growth.
