In the tumultuous landscape of Wall Street, the US stocks experienced a moderate dip on Tuesday, casting a shadow over the recent record highs. The investors, however, remained on the edge of their seats, awaiting the pivotal role Microsoft is expected to play as Big Tech gears up for a dramatic entrance into the earnings season.
The S&P 500 (^GSPC) maintained a steady course, trading flat after the previous session’s triumph propelled the benchmark to yet another unprecedented peak. The Dow Jones Industrial Average (^DJI) tiptoed 0.1% lower, while contracts associated with the tech-heavy Nasdaq Composite (^IXIC) mirrored a similar 0.1% descent.
The spotlight of this earnings season is undeniably fixated on the “Magnificent Seven” tech behemoths, excluding Tesla (TSLA), which are anticipated to shoulder a substantial portion of the S&P 500’s performance, steering the recent surge in stock values. All eyes are now trained on Microsoft (MSFT), with investors anxiously awaiting insights into the returns on its extensive investments in artificial intelligence. Tuesday’s after-hours revelations from Alphabet (GOOGL, GOOG) are poised to add another layer of intrigue, while the forthcoming reports from Apple (AAPL), Amazon (AMZN), and Meta (META) are eagerly anticipated on Thursday’s agenda.
The earnings landscape saw an early entrant as General Motors (GM) took the lead on Tuesday, unveiling results that not only surpassed expectations but did so with finesse in a fourth quarter marked by labor strikes. The response was emphatic, with GM shares leaping over 8% in the initial trading hours.
As the earnings drama unfolds, investors find themselves in a state of anticipation, counting down the hours to the Federal Reserve’s impending interest rate decision at the conclusion of its two-day meeting on Wednesday.
Amid Monday’s market opening news, the trajectory of U.S. stocks near record highs underscored the anticipation surrounding Big Tech earnings season, setting the stage for a dynamic period marked by the financial performances of tech giants that will undoubtedly steer market sentiment in the weeks to come.
Source: Yahoo Finance
