US Stock Futures Inch Higher, Fueled by Earnings and Fed Policy
US stock futures opened higher on Tuesday, setting the tone for a shortened trading week marked by corporate earnings, Federal Reserve decisions, and the impact of a robust dollar.
Index Futures Rise
* S&P 500 (ES=F) futures gained 0.2%, nearing their January record high.
* Nasdaq (NQ=F) futures climbed 0.2%, aiming for a fourth consecutive week of increases.
* Dow Jones (YM=F) futures advanced 0.2%, recovering from Friday's losses.
Strong Dollar Weighs on Multinationals
The dollar's ascent has exerted downward pressure on companies with significant overseas operations. Tech giants like Apple (AAPL), Alphabet (GOOG), and Microsoft (MSFT) rely heavily on international revenue. They have reported the impact on their Q4 earnings and anticipate further challenges due to reduced foreign spending against the strong dollar.
Federal Reserve Stays Firm
The Fed maintained its commitment to high interest rates to combat inflation. Governor Michelle Bowman emphasized the need for clarity on President Trump's policy shifts, particularly on tariffs, before considering further rate cuts.
Earnings Season Continues
This week, 46 S&P 500 companies will report earnings, including Alibaba (BABA), Walmart (WMT), and Dropbox (DBX) on Thursday. Devon Energy (DVN), Oxy (OXY), and Toll Brothers (TOL) will release results on Tuesday.