S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
The US futures market edged higher on Monday, as traders eyed a likely 90-day China tariff truce extension 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.
The news follows reports that the US and China are close to agreeing on a 90-day tariff truce extension. The truce, which was initially set to expire on March 1, would give both countries more time to negotiate a more comprehensive trade deal. The development has been met with optimism by investors, who see it as a positive step towards resolving the ongoing trade tensions between the two economic powers.
The prospect of a tariff truce extension has also boosted sentiment in the tech sector, which is widely seen as a key beneficiary of any trade deal. Tech giants such as Apple, Amazon, and Microsoft are set to report their quarterly earnings this week, and traders are eagerly awaiting the results.
Michael Wilson, chief US equity strategist at Morgan Stanley, has forecast strong 12-month returns for the S&P 500, citing several factors that could support the market. These include the growing adoption of artificial intelligence (AI) technology, the impact of tax breaks on corporate profits, the weakness of the US dollar, and the possibility of Federal Reserve interest rate cuts in 2026.
Wilson’s comments come as the S&P 500 has struggled to break out of its recent range. The index has been trading in a narrow band over the past few months, with investors cautious about the impact of trade tensions and the slowing global economy.
Despite the challenges, Wilson remains optimistic about the market’s prospects. He believes that the ongoing rotation towards value stocks, which has seen investors shift away from high-growth stocks and towards more defensive names, could provide a boost to the market in the coming months.
“The value rotation is a key factor in our positive view on the S&P 500,” Wilson wrote in a recent note to clients. “We believe that the market is underestimating the potential for value stocks to outperform in the coming months.”
Wilson’s comments are echoed by other market strategists, who see the value rotation as a key driver of market performance in the coming months. The rotation has seen investors shift away from high-growth stocks such as Netflix and Amazon, and towards more defensive names such as Johnson & Johnson and Procter & Gamble.
The value rotation has also been driven by the growing uncertainty surrounding the global economy. The slowdown in economic growth, which has seen many countries struggle to achieve sustained growth, has led investors to seek out more defensive names that are less exposed to the risks of a slowing economy.
The prospect of a tariff truce extension and key tech earnings have also boosted sentiment in the market, with many traders eager to see how the companies will perform in the coming months. The earnings season, which kicked off last week, has seen many companies report strong results, with investors looking for more evidence of the strength of the US economy.
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 news has boosted sentiment in the market, with many traders optimistic about the prospects for the S&P 500 in the coming months. The value rotation, which has seen investors shift away from high-growth stocks and towards more defensive names, is expected to continue, with many market strategists forecasting strong returns for the S&P 500 over the next 12 months.
