S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US equity markets are set to kick off the week on a positive note, with S&P 500 and Nasdaq 100 futures edging higher on Monday. The rise in futures is attributed to traders’ optimism over a likely extension of the 90-day China tariff truce and key tech earnings. As of the last check, S&P 500 futures were up 0.10%, while Nasdaq 100 futures rose 0.20%.
The news of a potential tariff truce extension comes as a welcome relief to investors who have been worried about the impact of the ongoing trade tensions on the global economy. The truce, which is expected to be announced later in the day, would give both the US and China more time to negotiate and resolve their differences.
In addition to the tariff truce, traders are also eyeing key tech earnings, which are expected to provide valuable insights into the performance of the sector. Some of the top tech companies, including Microsoft, Alphabet, and Intel, are set to report their quarterly earnings later in the week. The earnings reports are expected to be closely watched, as they could have a significant impact on the overall market sentiment.
Morgan Stanley’s Michael Wilson, a renowned analyst, has forecast strong 12-month returns for the US equities market. According to Wilson, the combination of AI, tax breaks, dollar weakness, and possible Fed cuts in 2026 will drive the market higher. He believes that the S&P 500 could rise to 4,000 or more over the next 12 months, making it an attractive time for investors to get involved in the market.
The strong forecast from Wilson is likely to have contributed to the rise in futures, as it suggests that the market could continue to climb higher in the coming months. The forecast also highlights the potential benefits of investing in the US equity market, including the impact of AI and tax breaks.
In terms of the economy, the news of a potential tariff truce extension could have a positive impact on growth. The tariffs imposed by the US on Chinese goods have had a significant impact on the global supply chain, leading to higher costs and reduced demand. An extension of the truce would give businesses more time to adjust to the new tariffs and potentially reduce the impact on the economy.
However, the news is not without its challenges. The ongoing trade tensions have led to a decline in global trade, which could have a significant impact on the economy. The decline in trade has also led to a decline in global investment, which could make it more difficult for businesses to access the capital they need to grow.
In conclusion, the S&P 500 and Nasdaq 100 futures are set to rise on Monday, driven by traders’ optimism over a likely 90-day China tariff truce extension and key tech earnings. The news of the potential tariff truce extension is likely to have a positive impact on the economy, as it would give businesses more time to adjust to the new tariffs and potentially reduce the impact on growth. The strong forecast from Morgan Stanley’s Michael Wilson also suggests that the US equities market could continue to climb higher in the coming months.
