US Market | Investors eye policy signals that could shape Wall Street’s next move

The upcoming review of U.S. economic policies by the International Monetary Fund is drawing attention across global markets, particularly on Wall Street, where investors are closely monitoring signals on fiscal sustainability, trade imbalances, and the trajectory of the U.S. dollar. The IMF is set to release its initial annual assessment of U.S. policies under the administration of Donald Trump on February 25, according to a Reuters report. The review will examine key macroeconomic indicators, including fiscal and current account deficits, as well as provide a broad evaluation of the dollar’s valuation in the global financial system. S&P 500 Top Gainers Omnicom Group80.94(15.36%) Deere662.00(11.58%) Texas Pacific Land486.56(10.40%) Occidental Petroleum51.53(9.38%) S&P 500 Top Losers EPAM Systems139.16(-17.01%) Pool218.36(-14.48%) Booking Holdings4,007(-6.15%) United Airlines Holdings110.05(-5.88%) The IMF continues to regard the dollar as the anchor of the international monetary framework, reflecting its dominant role in trade invoicing, reserve holdings, cross-border borrowing, and global payment flows. While recent currency movements have seen some depreciation, the broader view remains that exchange rate fluctuations should be assessed over longer horizons rather than short-term volatility, the report stated. The findings come at a time when U.S. deficits remain elevated following tax cuts enacted last year. Budget projections from the Congressional Budget Office indicate that deficits could average above 6% of GDP over the coming decade, with public debt rising to historically high levels relative to economic output. Such fiscal dynamics are increasingly relevant for equity investors because they influence interest rate expectations, bond yields, and liquidity conditions. For the U.S. stock market, including benchmarks like the S&P 500, the IMF’s assessment could shape sentiment around growth prospects and policy credibility. Markets typically respond to signals about fiscal discipline and inflation risks, as these factors affect corporate earnings outlooks and valuation multiples. Persistent high deficits may keep borrowing costs elevated, potentially weighing on rate-sensitive sectors such as technology and housing, while also influencing capital flows into equities versus fixed income. Live Events Investors will also be watching for any commentary on external balances and the dollar’s role, as currency stability is closely tied to multinational earnings and global risk appetite. A reaffirmation of the dollar’s central status could reinforce confidence in U.S. financial assets, whereas concerns about fiscal trajectories might prompt bouts of volatility. As the IMF concludes its consultations with U.S. officials and releases its review, market participants are likely to parse the report for clues on policy direction and macro risks, making it a potentially important catalyst for near-term moves in U.S. equities. (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless Beyond biscuits: ‘Forgotten brands’ power Britannia’s rise amid FMCG fall Why the toughest AI challenge lies in Indian IT’s organizational silos How an INR5 snack made Haldiram’s, Balaji private equity darlings How IndiGo-Air India duopoly is causing turbulence at MakeMyTrip, peers Stock Radar: Indian Bank hits fresh record highs in February 2026; time to book profits or buy the dip? F&O Radar: Bull Call Spread strategy for CG Power 1 2 3