US stock futures slipped 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, while S&P 500 futures (ES=F) shed 0.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell 0.3%, following back-to-back weekly losses for Wall Street’s major indexes.
A risk-off mood haunted markets as 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.
A falling dollar is seen as a potential spur to the relentless rally in gold, which topped $5,000 an ounce for the first time on Sunday. The precious metal continued to rise on Monday after passing the key milestone earlier than expected, raising questions about the stunning speed of its 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. But some analysts believe that may be starting to change as Trump continues to make tariff threats. At the weekend, US ally Canada came under the trade cosh again with the promise of a new 100% rate.
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 rate decision looms at the end of its two-day meeting on Wednesday, where the central bank is widely expected to hold interest rates steady. The policy decision comes after an escalation in Fed-White House tensions sparked by a criminal investigation into Chair Jerome Powell. Trump has hinted he could name his choice of replacement for Powell as soon as this week.
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