S&P 500 futures rose 0.27% this morning, premarket, with indexes in Asia and Europe also broadly rising as traders savored strong economic growth in China, a new “pro-stimulus” government in Japan, and the prospect that President Trump may not be in a position to impose 100% tariffs on Beijing starting Nov. 1.
Investors are also increasingly convinced that the Fed’s next rate cut is locked in. Additionally, the notion that the U.S. Supreme Court may yet rule that Trump’s tariffs are illegal would be the icing on the equity cake, according to a note from JPMorgan over the weekend. “The impact on equity markets could be material as the tariff equity factor [which has weighed on some stocks] could see a sharp reversal” if the tariffs are struck down, wrote Dubravko Lakos-Bujas and his team.
