Big Tech companies reported strong earnings growth, outpacing estimates, and continued heavy investment in AI infrastructure, though investor sentiment is becoming more cautious about immediate returns, with notable impacts on stock prices of Meta and Microsoft. The industry’s focus remains on revenue growth and return on investment, with Nvidia poised to be a key industry bellwether.
The article covers key market updates including strong earnings from Alphabet, Microsoft, and Meta, a cautious Fed rate outlook despite a cut, a new US-China trade agreement, mixed results from restaurant chains, and Comcast's quarterly performance amid potential acquisitions.
Major tech companies like Microsoft, Google, Amazon, and Meta are set to report strong earnings driven by AI investments, but concerns about an AI bubble persist due to uncertain returns, high spending, and risky circular deals, raising questions about the sustainability of the current AI-driven market rally.
As major tech companies like Microsoft, Alphabet, Amazon, and Meta report strong revenue growth, concerns grow over whether the AI boom fueling these gains is a bubble, with many projects showing uncertain returns and a web of circular deals increasing investor nervousness.
Stock futures increased ahead of a likely Federal Reserve interest rate cut and major Big Tech earnings reports, with positive investor sentiment boosted by expectations of a US-China trade deal and a strong recent market performance.
Big Tech companies like Microsoft, Meta, Apple, and Amazon are reporting earnings amid a significant AI spending spree, with Wall Street urging more aggressive investment to stay competitive. While some companies are making bold moves in AI, analysts believe they need to broaden their focus and take more risks to lead in the AI race. The earnings reports also reflect ongoing consumer caution and the impact of tariffs, with overall corporate profits remaining resilient despite economic uncertainties.
S&P 500 futures remained flat as investors awaited Big Tech earnings and the Federal Reserve policy meeting, with cybersecurity stock F5 and electronics manufacturer Sanmina seeing gains, while home-appliances maker Whirlpool experienced a decline. The market saw its sixth record closes of the year, with the Nasdaq Composite leading the way. The Federal Reserve is expected to leave rates unchanged, and consumer product rates have risen since the Fed began tightening rates. Major indexes are on track for gains in January, and notable after-hours stock movements include Woodward, Sanmina, and Whirlpool.
US stocks rose, with the S&P 500 hitting a fresh record close as investors geared up for a week packed with Big Tech earnings, a Federal Reserve rate decision, and the US jobs report. Tech stocks led the gains, with Tesla, Nvidia, Meta, and Microsoft reaching record highs. The week will also see the IRS accepting 2023 tax returns, the surprise exit of a key Goldman exec, and Warner Bros. Discovery stock falling on an analyst downgrade. Oil prices fell amid concerns about Chinese demand and escalating Middle East tensions.
The US stock market started the week with the S&P 500 hitting a fresh record close, driven by gains in tech stocks ahead of a busy week packed with Big Tech earnings updates, a Federal Reserve rate decision, and the US jobs report. Investors are closely watching earnings reports from major tech companies like Microsoft, Alphabet, Apple, Amazon, and Meta, while also anticipating the Fed's policy decision and the January jobs report. Oil prices fell amid concerns about Chinese demand and escalating Middle East tensions. Additionally, the tax filing season began as the IRS started accepting and processing 2023 federal tax returns.
US stocks edged higher as investors prepared for a week filled with Big Tech earnings updates, a Federal Reserve rate decision, and the US jobs report. The Dow Jones Industrial Average rose 0.3%, the S&P 500 drifted slightly higher, and the Nasdaq 100 rose 0.8%. The focus is on Big Tech earnings, the Fed's policy decision, and the US jobs report, while concerns about China's economic health were stoked by the looming failure of property development giant Evergrande. Additionally, the US tax filing season began, and tech stocks led Monday's modest gains, with SoFi Technologies and Lucid among the trending tickers.
The upcoming week is set to be busy for investors, with the Fed's policy decision, big tech earnings from Apple, Alphabet, Microsoft, Amazon, and Meta, and the release of the January jobs report. Investors expect the Fed to leave interest rates unchanged, while closely watching for any hints about future rate cuts. The January jobs report is anticipated to show a modest decrease in job additions, and big tech earnings are expected to drive the market narrative. Additionally, key economic data on manufacturing and services sectors, as well as updates on job openings, will also be closely monitored.
Stocks closed mixed on Monday as the Dow Jones Industrial Average fell 0.6% and the S&P 500 dropped nearly 0.2%, while the Nasdaq Composite rose about 0.3%. The benchmark 10-year Treasury yield briefly rose above 5% before retreating, causing market volatility. Investors are bracing for key economic data later in the week, including third-quarter GDP and the Fed's preferred inflation gauge. In deal news, Chevron announced its acquisition of Hess for $53 billion, while Arm stock rose after a partnership with Nvidia was revealed. Apple's film "Killers of the Flower Moon" represents a shift in strategy as the tech giant focuses on theatrical releases to drive subscribers to Apple TV+.
Stock futures edged higher on Sunday night as traders awaited the release of corporate earnings from major tech companies. Following a tough week for stocks, concerns over higher interest rates sent the major indexes into negative territory. Earnings season ramps up this week, with Alphabet, Amazon, Meta, and Microsoft among the big tech titans slated to report. Investors are also bracing for key economic data, including the U.S. gross domestic product report and the personal consumption expenditure, which could impact the possibility of another rate hike this year.
The major U.S. indexes closed the week with gains as investor confidence in a soft landing for the U.S. economy was boosted by positive Big Tech earnings, economic data, and central bank announcements. U.S. annual inflation slowed in June, potentially leading the Federal Reserve to end its interest rate hiking cycle. The Dow Jones Industrial Average rose 0.5%, the S&P 500 gained 0.99%, and the Nasdaq Composite added 1.9%. More than half of the S&P 500 companies have reported Q2 earnings, with 78.7% surpassing analyst expectations. The stock market saw inflows of $10 billion to U.S.-listed stocks.
The S&P 500 fell as traders awaited the Federal Reserve's interest rate decision and digested earnings reports from major technology companies. Google-parent Alphabet rose over 5% after reporting better-than-expected earnings, while Microsoft slid over 3% due to slowing cloud revenue growth. Snap tumbled 19% after giving weak guidance. Dow component Boeing gained over 4% after reporting a second-quarter beat. The Federal Reserve is expected to raise rates by a quarter percentage point, but some caution against assuming this will mark the end of the rate-hiking cycle. Other companies reporting earnings include Meta, Chipotle, and Mattel.
