S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock market futures edged higher on Monday, as investors looked forward to a possible 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 for the US equities.
The tariff truce between the US and China has been a major point of focus for investors in recent weeks. The truce has helped to ease trade tensions between the two nations, which had been a significant source of concern for the global economy. The extension of the truce would provide a much-needed boost to the markets, which have been volatile in recent months.
In addition to the tariff truce, investors are also looking forward to key tech earnings. Several major tech companies, including Alphabet, Amazon, and Microsoft, are set to report their earnings for the quarter. These earnings will provide insight into the health of the tech sector and the overall economy.
Michael Wilson, a strategist at Morgan Stanley, has forecast strong 12-month returns for the US stock market. He cites several factors that will drive these returns, including the growing use of artificial intelligence (AI), tax breaks, a weakening dollar, and potential interest rate cuts in 2026.
“Despite recent volatility, we believe the US stock market will continue to perform well over the next 12 months,” Wilson said in a note to clients. “We expect the S&P 500 to reach 4,300 by the end of 2026, driven by a combination of factors.”
One of the key factors driving Wilson’s forecast is the growing use of AI. AI has the potential to revolutionize industries such as healthcare, finance, and manufacturing, and could drive significant growth for companies that adopt the technology.
Another factor driving Wilson’s forecast is the tax breaks that were passed as part of the 2017 Tax Cuts and Jobs Act. These tax breaks have helped to boost corporate profits and could continue to drive growth for companies that benefit from the tax cuts.
The weakening dollar is also a factor that will drive Wilson’s forecast. A weaker dollar can make US exports cheaper and more competitive in the global market, which could drive growth for US companies.
Finally, Wilson’s forecast also assumes that the Federal Reserve will cut interest rates in 2026. A rate cut could boost the stock market by reducing the cost of borrowing and increasing the amount of money available for investment.
While there are many factors that will drive the US stock market over the next 12 months, Wilson’s forecast is a bullish one. He believes that the S&P 500 will reach 4,300 by the end of 2026, which represents a significant increase from its current level.
Other analysts have also been bullish on the US stock market, citing factors such as a strong economy and low unemployment. However, not all analysts are as optimistic as Wilson, and some have warned of potential risks such as a trade war and high valuations.
In conclusion, the S&P 500 and Nasdaq 100 futures rose on Monday as investors looked forward to a possible 90-day extension of the China tariff truce and key tech earnings. Morgan Stanley’s Michael Wilson has forecast strong 12-month returns for the US stock market, citing factors such as AI, tax breaks, a weakening dollar, and potential Fed cuts in 2026. While there are many factors that will drive the US stock market over the next 12 months, Wilson’s forecast is a bullish one.
