S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US stock market is poised to kick off the week on a positive note, with S&P 500 and Nasdaq 100 futures edging higher as investors await key tech earnings reports and a potential 90-day extension of the China tariff truce. As of Monday morning, S&P 500 futures had risen 0.10% to 3,930, while Nasdaq 100 futures gained 0.20% to 12,550.
The optimism in the market can be attributed to a combination of factors, including the likelihood of a tariff truce extension with China and strong earnings prospects for major tech companies. The US and China are expected to announce a 90-day extension of their trade truce, which would give both sides more time to negotiate a more comprehensive deal.
Meanwhile, investors are also looking ahead to a slew of tech earnings reports, which are expected to provide insights into the sector’s performance in the current quarter. Major companies such as Microsoft, Alphabet, and Amazon are set to release their earnings reports in the coming days, and investors are hoping for strong results to boost the market.
In a note to clients, Morgan Stanley’s Michael Wilson forecast strong 12-month returns for the US stock market, citing several positive factors. Wilson pointed to the growing adoption of artificial intelligence (AI) technologies, which he believes will drive growth for many companies. He also highlighted the benefits of tax breaks, such as the corporate tax cut passed in 2017, which has helped to boost corporate profits.
Additionally, Wilson noted that a weaker US dollar could also provide a boost to the market, as a cheaper dollar makes US exports more competitive in the global market. Finally, he cited the possibility of Federal Reserve interest rate cuts in 2026 as another positive factor for the market.
Wilson’s forecast is in line with many other analysts, who believe that the US stock market is poised for continued growth in the coming year. With the S&P 500 index already up around 25% in 2023, many investors are looking for ways to capitalize on the market’s momentum.
In terms of specific stocks, several tech companies are expected to report strong earnings growth in the coming days. Microsoft, for example, is expected to report earnings per share (EPS) of $1.14, up from $1.08 in the same period last year. Alphabet, the parent company of Google, is expected to report EPS of $10.51, up from $9.70 in the same period last year.
Amazon, meanwhile, is expected to report EPS of $2.27, up from $1.57 in the same period last year. While these estimates are subject to change, they suggest that many tech companies are poised for strong earnings growth in the current quarter.
In summary, the US stock market is poised to kick off the week on a positive note, with S&P 500 and Nasdaq 100 futures edging higher as investors await key tech earnings reports and a potential 90-day extension of the China tariff truce. With strong earnings prospects and several positive factors driving the market, many investors are looking for ways to capitalize on the market’s momentum.
