Location & Language

Zenfinex Global Limited regulated by the Financial Services Authority (FSA) of Seychelles (SD092)

Tech Giants Take the Stage as Stocks Eye Earnings Rebound

By Camilo Botia,

Stocks are attempting to rally after a $2 trillion selloff, with investors keenly monitoring this week’s flood of corporate earnings reports. The spotlight is squarely on big tech, as companies face pressure to prove the profitability of their artificial intelligence (AI) endeavours.

Nearly 40% of the S&P 500, including most of the “Magnificent Seven” megacaps, will unveil their results this week. Some analysts predict a 40% rise in their profits from a year ago. This critical earnings season arrives amidst geopolitical concerns and signals that the Federal Reserve will maintain higher interest rates.

Wall Street analysts are sharply divided on whether corporations can meet the high expectations. While Morgan Stanley anticipates improved profit growth, JPMorgan Chase & Co. sees a clouded outlook due to inflation, a strong dollar, and geopolitical tensions, signalling a potentially volatile market.

Despite these concerns, a Bloomberg Markets Live Pulse survey shows optimism – nearly two-thirds believe earnings will boost the S&P 500.

Key Themes to Watch in The Upcoming Days:

• Tech Giants in Focus: America’s tech leaders report results this week and face pressure to demonstrate the profitability of AI investments.

• Earnings Growth Under Scrutiny: Analysts are scrutinizing companies’ ability to maintain earnings growth in the current economic climate.

• The ‘Higher for Longer’ Rate Outlook: Investors are closely monitoring how rising interest rates and persistent inflation could significantly impact corporate guidance, a crucial factor in their investment decisions.

 

The S&P 500’s six-day consecutive losing streak has finally ended, with the 5,000 confirming its strength as the most significant weekly support for the index’s price. Volatility continues to increase, as shown on the Bollinger bands, and the expectation for future corporate results might enhance market uncertainty. The RSI indicator showed a significant downward momentum and got close to an oversold condition due to the substantial sell-off; however, the price recovered and remained in a “neutral” zone.  The following critical level for the index is around 5,100 and above the 50-day moving average at 5,118.69; it is the second considerable level for the price to beat to reach new highs.

Back

Popular Posts

Reserve Bank of Australia Holds Interest Rates at 4.35% Amidst Declining Australian Dollar

Brief Overview of Key Economic Events from the Past Week

Optimism and Challenges: Supporting and Pressuring Factors on the U.S. Stock Market

Continued Rise of Cryptocurrencies and the Emergence of Ripple as a Strong Competitor

Lorem Ipsum

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

Here are some related articles you may find interesting:

Market Insights​

December 10, 2024

Reserve Bank of Australia Holds Interest Rates at 4.35% Amidst...

The Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35% in its meeting today, marking the eighth consecutive month at this level. The...

Market Insights​

December 9, 2024

Brief Overview of Key Economic Events from the Past Week

Last week witnessed several significant economic events globally. In the United States, economic data showed mixed results. The Manufacturing Purchasing Managers' Index (PMI) rose to...

Market Insights​

December 6, 2024

Optimism and Challenges: Supporting and Pressuring Factors on the U.S....

The U.S. stock markets have recently experienced a strong sense of optimism, with the VIX index dropping to 12.89 points two days ago, marking its...

Market Insights​

December 5, 2024

Continued Rise of Cryptocurrencies and the Emergence of Ripple as...

Cryptocurrency markets are known for their significant volatility, but recently, we've witnessed sharp fluctuations, particularly after the announcement of Trump's victory in the U.S. presidential...

Ready to Elevate Your Trading Journey?

Open a Taurex account and start trading today.

We’re Sorry

Access to tradetaurex.com
is unavailable in your region

tradetaurex.com is required to abide by global laws and therefore the information on this site is not directed at residents of the United States, Canada, North Korea, Iran, Myanmar, Belgium, Spain, France, Japan, South Korea or any particular countries and is not intended for distribution to, or use by, any person in an country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.