US Stock Futures Edge Higher as Earnings, Fed Rates, and Dollar Impact Week
US stock futures opened higher on Tuesday, Feb. 18, 2025, extending gains from the previous holiday-shortened session. The market's direction is likely to be shaped by earnings reports, the Federal Reserve's rate path, and the impact of a strong US dollar.
Index Futures Rise
* S&P 500 (ES=F) futures climbed 0.31%, approaching the January all-time high.
* Nasdaq (NQ=F) futures gained 0.42%, aiming for a fourth consecutive week of gains.
* Dow Jones (YM=F) futures advanced 0.15%, recovering losses from Friday.
Impact of Strong US Dollar
The recent rise in the US dollar index (DX=F) has negatively affected companies with significant overseas operations. Megacap companies like Apple, Alphabet, Microsoft, Tesla, and Meta have reported lower earnings and anticipate future revenue headwinds due to currency headwinds.
Fed Maintains Hawkish Stance
The Federal Reserve remains committed to keeping interest rates high to combat inflation. Fed Governor Michelle Bowman emphasized the need for more clarity on policy shifts before considering rate cuts.
Earnings Season Continues
Results from 46 S&P 500 companies are expected this week, including Alibaba (BABA), Walmart (WMT), and Dropbox (DBX) on Thursday. Devon Energy (DVN), Oxy (OXY), and Toll Brothers (TOL) will report on Tuesday.