S&P 500, Nasdaq Futures Tick Up As Traders Eye Tech Earnings, China Tariff Extension: Why This Analyst Sees A Bright 12-Month Outlook

U.S. stock futures moved higher late Monday as traders braced for the looming big-tech earnings and looked forward to an extension to the tariff deadline for China.

Commerce Secretary Howard Lutnick said in an interview with Fox News that a 90-day extension to the trade truce with China is likely, but added that the final say lies with President Donald Trump. Negotiations between the trade representatives of China and the U.S. are ongoing currently in Stockholm.

The current agreement, struck in London, to pause the reciprocal tariffs is set to expire by Aug. 12. Additionally, the tariff deadlines for those countries that have not yet agreed on bilateral deals are fast approaching.

As of 9:45 p.m. ET, the S&P 500 and Nasdaq 100 futures climbed about 0.10% and 0.20%, respectively. The Dow futures edged up 0.06% and the Russell 2000 futures added 0.12%.

On Monday, the major averages failed to sustain the early rally, as the U.S.-European Union (EU) trade deal failed to inspire too much confidence. The cautious mood also reflected traders' apprehensions ahead of key earnings reports from Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon (AMZN) scheduled for the week, as well as the two-day Federal Reserve meeting that kicks off on Tuesday.

Notwithstanding the uncertainties, the S&P 500 Index eked out its sixth consecutive record, although closing only marginally higher. On the other hand, the Dow Jones Industrial Average ended modestly lower.

Among S&P 500 sector classes, energy, IT, and consumer discretionary stocks advanced, while consumer staples, financials, healthcare, materials, real estate, and utilities stocks came under selling pressure.

The Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index, gained 0.31% and the SPDR S&P 500 ETF (SPY) rose 0.11%. On the other hand, the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares Russell 2000 ETF (IWM) fell 0.07% and 0.12%, respectively. 

In the upcoming session, the spotlight is likely to be on the Federal Open Market Committee (FOMC) meeting that gets underway, the results of the Job Openings And Labor Turnover Survey (JOLTS), and the Conference Board’s July consumer confidence data.

The advance trade balance data for June and the results of two separate house price surveys could also stir interest among traders.

Among the earnings catalysts for Tuesday are those from Boeing (BA), AstraZeneca (AZN), JetBlue Airways (JBLU), Merck (MRK), PayPal (PYPL), UnitedHealth (UNH), UPS (UPS), Electronics Arts (EA), Starbucks (SBUX), Seagate Technology (STX), Qorvo (QRVO), and Visa (V).

Morgan Stanley Chief Equity Strategist Michael Wilson said in a note that the returns for the average stock are likely to be quite strong over the next 12 months, citing the firm’s back test.

Wilson said the market is transitioning to a rolling recovery backdrop aided by positive operating leverage, artificial intelligence (AI) adoption, dollar weakness, cash tax savings from Trump’s tax bill, easy growth comparisons, pent-up demand for many sectors, and a high probability of Fed cuts by the first quarter of 2026.

“The historically sharp inflection we're seeing in earnings revisions breadth confirms this process is underway — an underappreciated development, in our view,” he added.

Crude oil prices, which jumped over 2.5% on Monday in response to the EU trade deal, extended their gain in overnight trading, while gold futures rebounded in the Asian session. 

After rising past the 4.40% mark on Monday, the 10-year U.S. Treasury note yield edged down.

Most Asian markets declined in morning trading as domestic market participants stayed wary about the key looming catalysts. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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