Earnings Season Heats Up: Will Records Continue to Fall?
The US stock market is bracing for a jam-packed week of top-tier earnings reports that could either propel or hinder the current record-setting rally. As investors await the latest financial updates from over 100 S&P 500 companies, futures markets are already showing signs of caution.
Tech Stocks Lead the Decline
Before the bell on Monday, S&P 500 futures dropped by roughly 0.3%, retreating from a fresh all-time closing high and a sixth consecutive weekly win. The tech-heavy Nasdaq 100 contracts shed 0.6%, while Dow Jones Industrial Average futures edged 0.2% lower. The decline in tech stocks is particularly noteworthy, given the sector’s significant influence on the overall market.
Earnings Expectations Run High
With 80% of third-quarter updates from S&P 500 companies having already topped expectations, investors are eager to see if this trend will continue. However, with great expectations comes great uncertainty, and any disappointment could lead to a market correction. All eyes are on Tesla’s report on Wednesday, following the company’s underwhelming robotaxi unveiling.
Big Names on the Earnings Docket
Other major players set to report earnings this week include General Motors, Coca-Cola, American Airlines, and UPS. Boeing faces a critical test on Wednesday, when it will release earnings while its workers vote on a tentative deal to end a five-week strike. The planemaker’s shares rose over 3% in early Monday trading, suggesting investors are cautiously optimistic about the company’s prospects.
Global Market Trends
Meanwhile, oil prices have recovered, rising about 2% alongside gains for Chinese stocks as China’s stimulus push continues. Global benchmark Brent futures traded near $74 a barrel, while West Texas Intermediate crude futures topped $70. The market is also keeping a close eye on Israel’s next move regarding Iran, which could impact global energy prices.
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