US stock futures edged higher on Tuesday to begin a holiday-shortened week of trading highlighted by Federal Reserve minutes, as President Donald Trump’s policy overhaul continued to loom over markets.
Nasdaq 100 futures (NQ=F) popped roughly 0.4% on the heels of Friday’s record close for the tech-heavy index. S&P 500 futures (ES=F) put on 0.3%, eyeing a fresh bid on a January all-time high, while contracts on the Dow Jones Industrial Average () were little changed.
Markets are cautiously upbeat after Monday’s closure for President’s Day as investors debate the future path of interest rates. Fed officials over the long weekend signaled a firm belief that high interest rates are needed to combat rising inflation, putting the spotlight on minutes from their January meeting due on Wednesday.
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.
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.
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