S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
In a sign of optimism, US futures edged higher on Monday, as traders eagerly anticipate a likely 90-day extension of the China tariff truce and key tech earnings reports. The S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, indicating a positive start to the week for the markets.
The tariff truce, which was temporarily suspended in September, is expected to be extended, providing a much-needed boost to global trade and economic growth. The news has sparked a wave of optimism among investors, who are now focused on key earnings reports from major tech companies.
Morgan Stanley’s chief US equity strategist, Michael Wilson, is one of the many analysts who are forecasting strong returns for the market over the next 12 months. In a recent report, Wilson cited several factors that he believes will drive market growth, including the increasing adoption of artificial intelligence (AI), tax breaks, dollar weakness, and the possibility of Federal Reserve rate cuts in 2026.
“The combination of these factors is likely to lead to strong 12-month returns,” Wilson said. “We expect the S&P 500 to rise to 4,000 by the end of 2023, and we believe that the Nasdaq will outperform the S&P 500, driven by the strong growth prospects of the tech sector.”
Wilson’s forecast is backed by many other market analysts, who are also predicting a strong 2023 for the markets. The S&P 500 has already risen by around 25% over the past 12 months, and many analysts believe that it has the potential to continue its upward trend in the coming months.
One of the main drivers of the market’s recent strength has been the tech sector, which has been fueled by the increasing adoption of AI and other advanced technologies. The sector has been a key area of focus for investors in recent years, and it is likely to continue to play a major role in the market’s direction in the coming months.
Another factor that is expected to drive market growth is the possibility of Federal Reserve rate cuts in 2026. The Fed has been raising interest rates over the past few years in an effort to combat inflation, but many analysts believe that it may need to cut rates in the future in order to support economic growth.
The dollar has also been a key factor in the market’s recent direction. The dollar has been weak in recent months, and many analysts believe that it may continue to decline in the coming months. A weak dollar can be beneficial for US companies that rely on exports, as it makes their products cheaper for foreign consumers.
In addition to the tariff truce and tech earnings, investors are also keeping a close eye on other global economic factors, including the ongoing trade tensions between the US and China. The two countries have been engaged in a trade war for several years, and many analysts believe that it may continue to be a major source of uncertainty for the market in the coming months.
Despite these challenges, many analysts believe that the market has the potential to continue its upward trend in the coming months. The S&P 500 and Nasdaq 100 futures are both trading at all-time highs, and many analysts believe that they have the potential to continue their upward trend in the coming months.
In conclusion, the S&P 500 and Nasdaq 100 futures rose on Monday as traders eyed a likely 90-day China tariff truce extension and key tech earnings. The market has been driven by a number of factors in recent months, including the increasing adoption of AI, tax breaks, dollar weakness, and the possibility of Federal Reserve rate cuts in 2026. Despite the ongoing trade tensions between the US and China, many analysts believe that the market has the potential to continue its upward trend in the coming months.
