The leading US stock indices are gearing up for a muted beginning to the week, in anticipation of several key events, including the Federal Reserve’s decision on interest rates.
Wall Street has witnessed a record-setting surge, with the S&P 500 reaching new all-time highs on five occasions this month.
Despite Friday’s investor celebration over the ongoing slowdown in US inflation, the mood was dampened by Intel’s disappointing revenue forecast for the first quarter, leading to a drop in the S&P 500 and Nasdaq at the day’s close.
From Tuesday, major corporations such as Microsoft, Alphabet, Apple, Meta Platforms, Amazon.com, Exxon Mobil, Chevron, Qualcomm, Merck, Pfizer, and Boeing are scheduled to release their earnings reports.
Larry Adam, Chief Investment Officer at Private Client Group, commented:
With the market at unprecedented highs and valuations at the higher end of the spectrum seen in the past two decades, any letdowns from the major tech firms, collectively known as MAGMAN, could trigger heightened market volatility in the upcoming weeks.
“Despite expectations being lowered, the start to the 4Q23 earnings season has been somewhat underwhelming. The proportion of companies surpassing revenue and profit expectations is below the usual average, and the extent of these earnings beats is the smallest since 2008.
In pre-market activity, the Dow Jones Industrial Average and S&P 500 showed little movement, while futures for the Nasdaq 100 were slightly up, by 0.2%.
