Big technology companies’ earnings reports to challenge the positive trend in US stock market – Semafor
A series of major technology companies are set to release their earnings reports in the upcoming weeks, which will serve as a significant test for the stock market rally that coincided with the beginning of President Donald Trump’s term in office. On Wednesday, Microsoft, Meta, and Tesla are scheduled to report their earnings, followed closely by Apple, Alphabet, and Amazon. Analysts predict that these companies may announce a decrease in profits compared to previous quarters, a development that could potentially impact their valuations in the market.
“The bar has been raised,” remarked one analyst, highlighting the heightened expectations surrounding these earnings reports. Investors are keeping a close eye on the US Federal Reserve as well, with the expectation that interest rates will remain unchanged at the upcoming meeting on Wednesday. Despite the steady interest rates, Federal Reserve Chair Jerome Powell may offer insights into the future direction of the Fed under Trump’s administration, especially after the president’s recent remarks indicating his desire for lower interest rates in tandem with falling oil prices.
The anticipation surrounding these earnings reports is palpable as market observers weigh the potential impact on the stock market upon their release. With Big Tech giants such as Microsoft, Meta, Tesla, Apple, Alphabet, and Amazon all scheduled to report their financial performance, investors are bracing themselves for any potential shifts in market dynamics. The expected slowdown in profits from these companies signals a new phase of evaluation and scrutiny, as market valuations may face pressure based on the reported numbers.
As the Federal Reserve prepares to convene its meeting, all eyes are on Chair Jerome Powell for any hints or indications regarding the future monetary policy direction. Trump’s vocal stance on interest rates and oil prices adds an additional layer of complexity to the discussion, prompting speculation about potential policy shifts in response to the president’s demands. The intersection of technology earnings reports and Federal Reserve deliberations is likely to shape the upcoming market trends and investor sentiment, setting the stage for a period of heightened volatility and anticipation in the financial landscape.
