S&P 500, Nasdaq Futures Rise as Tariff Truce, Tech Earnings Eyed
US futures edged higher on Monday, as traders eagerly awaited a likely 90-day extension of the China tariff truce and the release of key tech earnings. S&P 500 and Nasdaq 100 futures rose 0.10% and 0.20%, respectively, signaling a positive start to the week for investors.
The market’s upward momentum was fueled by reports that the US and China are close to agreeing on a 90-day tariff truce extension. The news has sparked optimism among investors, who believe that a prolonged period of trade tensions could have far-reaching consequences for the global economy. The truce would allow both countries to continue trade talks, which have been stalled in recent months.
In addition to the tariff truce, tech earnings are also expected to play a significant role in shaping market sentiment this week. Several major tech companies, including Intel, Micron, and Texas Instruments, are set to release their quarterly earnings reports. Analysts are expecting strong results, driven by ongoing demand for cloud computing, artificial intelligence, and other emerging technologies.
Morgan Stanley’s Michael Wilson, a well-known Wall Street strategist, has forecast strong 12-month returns for the S&P 500, citing several factors that could drive market performance. In a recent note, Wilson highlighted the potential benefits of artificial intelligence, tax breaks, dollar weakness, and possible Federal Reserve rate cuts in 2026.
Wilson’s optimistic outlook is not without merit. The S&P 500 has already experienced a significant rally in recent months, driven by a combination of factors including economic growth, corporate earnings, and central bank policy. The index has risen over 15% since the beginning of the year, and some analysts believe that it could continue to climb higher in the coming months.
One of the key drivers of the market’s upward momentum has been the growing demand for cloud computing and artificial intelligence. These technologies have become increasingly important for businesses of all sizes, as they seek to stay competitive in a rapidly changing global economy.
Cloud computing, in particular, has been a major growth driver for many tech companies. The trend is expected to continue, as more businesses shift their focus to cloud-based solutions and away from traditional on-premise infrastructure. Analysts believe that this trend could have significant implications for the tech sector, as companies that are well-positioned to benefit from the shift could experience significant revenue growth.
Artificial intelligence is another area that is expected to drive growth for many tech companies. AI has become increasingly important for businesses, as they seek to leverage its power to drive innovation and improve operational efficiency. The technology has the potential to revolutionize industries such as healthcare, finance, and retail, and many companies are already investing heavily in its development.
Tax breaks are another factor that could drive market performance in the coming months. The US tax overhaul, which was signed into law in 2017, has provided significant benefits for many businesses, including a lower corporate tax rate and increased depreciation allowances.
The dollar weakness has also been a significant factor in the market’s upward momentum. A weaker dollar has made US exports more competitive, which has boosted economic growth and driven up demand for US goods and services. The trend is expected to continue, as the US Federal Reserve has indicated that it may reduce interest rates in the coming months to support economic growth.
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’s upward momentum was fueled by reports of a tariff truce, strong tech earnings, and favorable market conditions. Morgan Stanley’s Michael Wilson has forecast strong 12-month returns for the S&P 500, citing AI, tax breaks, dollar weakness, and possible Fed cuts in 2026.
