Dow, S&P 500, Nasdaq falter with big week of Big Tech earnings, Fed meeting ahead
US stock futures nudged into the red on Monday as pressure built on the dollar, keeping the mood cautious ahead of a big week filled with a Federal Reserve rate decision and Big Tech earnings reports.
Dow Jones Industrial Average futures (YM=F) traded flat, and S&P 500 futures (ES=F) were also little changed. Contracts on the tech-heavy Nasdaq 100 (NQ=F) edged down 0.2%, following back-to-back weekly losses for Wall Street’s major indexes.
Markets took a risk-off tinge after the dollar (DX-Y.NYB) dropped to a four-month low amid speculation that the US — in a rare move — could work with Japan on intervening to halt the yen’s slide. That extended a sell-off in the US currency, which lost some appeal as a haven as President Trump’s aggressive push for Greenland roiled markets.
At the weekend, Canada came under the trade cosh again with Trump’s threat of new 100% duties for the US neighbor it goes ahead with a China trade deal.
A weak dollar could spur the already relentless rally in gold, which topped $5,000 an ounce for the first time on Sunday and continued to rise on Monday. Prices passed the key milestone earlier than Wall Street expected, raising questions about the stunning speed of gold’s gains.
Currencies have largely taken a back seat to stocks since the post-pandemic market rally took hold and investors focused on earnings growth, AI-driven optimism, and the steady resilience of US equities. That said, some analysts believe that may be starting to change as Trump continues to make tariff threats.
This week’s flood of earnings could test that view, in particular potentially pivotal quarterly reports from four of the “Magnificent Seven” tech megacaps. Microsoft (MSFT), Meta (META), and Tesla (TSLA) are slated to post results on Wednesday, and Apple’s (AAPL) update is set to follow a day later. Eyes will be on AI spending plans, after Intel’s (INTC) downbeat outlook last week highlighted challenges to the AI build-out.
At the same time, the Fed’s policy decision looms at the end of its two-day meeting on Wednesday, where the central bank is widely expected to hold interest rates steady. Wall Street is wondering how long the Fed will wait to make its next rate cut amid division among policymakers and building tensions with the White House. Trump has hinted he could name his choice of replacement for Powell as soon as this week, with BlackRock’s Rick Rieder tapped as the favorite.
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