News Market Overview

• DXY (US Dollar Index): Dollar sentiment remains cautious as markets await President Trump's expected auto tariff relief announcement. The lack of fresh DXY-specific news suggests traders are in a holding pattern, likely monitoring upcoming labor market data (JOLTS) and consumer confidence reports for directional cues. The dollar's strength may be temporarily capped by expectations of trade policy moderation.

• RTY (Russell 2000): Small-cap stocks could see positive momentum from Trump's anticipated auto tariff relief, as small manufacturers in the supply chain would benefit from reduced trade tensions. However, the absence of Russell-specific news indicates investors may be waiting for the JOLTS report to gauge labor market health before committing to small-cap positions, which are typically more sensitive to domestic economic conditions.

• DJI (Dow Jones Industrial Average): The Dow is showing mixed performance as investors prepare for a busy week of earnings and economic data releases. With its heavy industrial component, the index is likely to respond positively to any auto tariff relief announcements, particularly benefiting manufacturers and suppliers within the index. Investor caution ahead of key economic indicators suggests limited directional conviction in the near term.

• SPX (S&P 500): Futures are trending higher (+0.2%) as markets anticipate President Trump's auto tariff relief measures. The broader index has shown resilience, with futures also rising (+0.4%) following Alphabet's positive quarterly results last week. This suggests improving investor sentiment despite ongoing U.S.-China trade concerns. The market appears to be balancing optimism from corporate earnings against caution regarding trade policy developments.

• NDAQ (Nasdaq Composite): Tech sentiment appears positive with Alphabet's quarterly results providing support to the tech-heavy index. Nasdaq futures were up 0.4% following these results, indicating continued strength in the technology sector. The tech index may continue to outperform if upcoming economic data supports a soft landing scenario, though investors remain vigilant about U.S.-China trade relations which could particularly impact tech supply chains.

• Broader Market Themes: Markets are displaying cautious optimism ahead of a data-heavy week, with three key themes emerging: 1) Trade policy moderation, with Trump's expected auto tariff relief potentially signaling a less aggressive stance than initially feared; 2) Corporate earnings resilience, exemplified by Alphabet's positive results boosting tech sentiment; and 3) Economic data focus, with investors closely watching upcoming JOLTS and consumer confidence reports for signs of economic health. The interplay between these factors will likely drive market direction in the near term.