Last Weekâs Recap
Last week witnessed significant declines, with the S&P 500 and Nasdaq Composite dropping 3.05% and 5.52%, respectively, marking six consecutive days of losses. The Nasdaq notably experienced a 2% drop on Friday, driven by a 10% fall in Nvidia shares, which significantly impacted the broader tech sector. Conversely, the Dow Jones Industrial Average remained relatively stable due to its lower tech exposure.
Earnings and Economic Indicators
This week is pivotal for the markets with major earnings on the horizon. Tech giants such as Tesla, Meta Platforms, and Microsoft are among those scheduled to report. The earnings outcomes could heavily influence market directions. Additionally, significant economic indicators are set to be released, including the GDP figures and the PCE inflation print, the Federal Reserveâs favored inflation gauge.
Sector Movements and Analyst Insights
In premarket trading, various sectors showed movement. Notably, Tesla and other electric vehicle makers saw stock prices drop following price cuts. Verizonâs shares increased after earnings per share exceeded expectations, despite a slight revenue shortfall. Moreover, financial technology stocks and bitcoin-related companies like Riot Platforms and Coinbase experienced gains, responding to market events and analyst ratings.
Market Forecast
Looking ahead, the marketâs direction in the short term appears to hinge on the forthcoming tech earnings and economic data. The overall sentiment leans cautiously optimistic, suggesting a potential rebound if the earnings reports meet or exceed expectations. However, the backdrop of economic indicators, particularly the inflation data, will be crucial in determining the marketâs next moves. The expectation is moderately bullish, contingent on positive earnings surprises and manageable inflation figures.
