Dow, S&P 500, Nasdaq push higher to start holiday-shortened trading week
US stock futures edged higher to open a delayed, holiday-shortened week of trading flavored by earnings, the Federal Reserve’s rate path, and the impact of a strong American dollar.
Futures attached to the major indexes continued rising apace after a Monday closure for Presidents Day. S&P 500 (ES=F) futures fluttered up 0.2%, hovering just shy of the January all-time high. Futures on the Nasdaq (NQ=F) rose 0.2%, eyeing a fourth consecutive week of gains, while futures attached to the Dow Jones (YM=F) also gained about 0.2%, regaining ground lost on Friday.
Over the past several months, the dollar’s (DX=F) rapid rise has been applying downward pressure to the stocks of corporations with strong overseas presences. A number of megacap companies rely on foreign arms for over 50% of their revenue, including Apple (AAPL), Alphabet (GOOG), Microsoft (MSFT), Tesla (TSLA) and Meta (META). Companies said their earnings were already affected in Q4 and are projecting revenues ahead to be similarly hampered by a reluctance in foreign spending against a strong dollar.
The dollar index was up Monday evening but down from a mid-January 2025 peak.
Meanwhile, the Fed continues to hold firm in the belief that high interest rates are needed to combat rising inflation. The decision to hold rates in the 4.25 to 4.5% range comes amid President Donald Trump’s fast-moving policy shifts, most prominently on tariffs.
“It will be very important to have a better sense of these policies, how they will be implemented, and establish greater confidence about how the economy will respond” before cutting rates further, Fed Governor Michelle Bowman said Monday.
Earnings season continues, with results from 46 S&P 500 companies due this week. Investor interest will be focused on Thursday, with Alibaba (BABA), Walmart (WMT), and Dropbox (DBX) all announcing that day. Tuesday will see Devon Energy (DVN), Oxy (OXY), Toll Brothers (TOL) all release last-quarter results.
Coming soon
Stock market coverage for Tuesday, Feb. 18, 2025
