Indexes Waver as Dollar Strengthens

Stocks struggled to find clear direction after the long weekend.

The Nasdaq Composite led early declines, falling more than 1% in Tuesday morning trade before rebounding. All three major indexes ultimately finished modestly higher, extending a period of heightened volatility.

Lingering worries about artificial intelligence’s long-term disruptive impact weighed on markets last week, with the Nasdaq logging its fifth consecutive weekly loss. With AI spending accelerating, a record share of fund managers now believe companies may be overinvesting, according to a Bank of America survey.

Shares of General Mills fell 7% Tuesday after the Cheerios maker lowered its full-year outlook, citing soft consumer sentiment. Around one-quarter of S&P 500 companies still have to report quarterly results. So far, roughly 80% of earnings have met or exceeded expectations, according to LSEG.

This week’s holiday-shortened economic calendar includes the first estimate of October–December growth, due Friday, which will set the baseline for early-2026 expectations.

The dollar strengthened, particularly against the British pound following weak U.K. jobs data. Gold, silver, and copper prices declined.

A new survey highlights growing investor concern that companies may be overspending.