Investors are on edge as the stakes are raised for two more technology and growth giants set to report their earnings this week. The recent performance of U.S. stocks has left little room for disappointment, with the S&P 500 experiencing its biggest weekly gain since early November following a 5% pullback.
While strong reports from Microsoft and Google parent Alphabet boosted the market, Meta Platforms faced a significant drop in its stock price after a disappointing forecast. The repercussions were felt across the board, with industrial bellwether Caterpillar also seeing a decline in its shares.
According to JPMorgan strategists, companies that have missed earnings estimates are facing the biggest underperformance in at least eight years. This trend highlights the high expectations investors have for corporate performance in the current market environment.
Looking ahead, more earnings reports are expected from key players like Amazon and Apple, as well as the Federal Reserve’s latest monetary policy statement. The market’s reaction to these upcoming announcements will be closely watched, especially as concerns about rising Treasury yields and inflation persist.
Despite solid corporate results so far, investors remain cautious about the impact of inflation and potential interest rate changes. The market’s focus on these macroeconomic factors could overshadow positive earnings news in the coming weeks.