From Nasdaq:

The stock market’s strong start to the year will face a major test next week with big tech earnings, the Federal Reserve’s meeting, and the employment report. The S&P 500 is up almost 3% since December, near record highs, propelled by expectations of a stable growth- inflation balance in the U.S. economy.

Earnings reports from Alphabet, Microsoft, Apple, Amazon, and Meta will weigh heavily in the market next week. These tech giants collectively make up nearly 25% of the S&P 500, and their reports could impact the entire index. Despite the overall rise of these stocks, Tesla has dropped 26% this year while Nvidia has gained 23%.

Companies in the S&P 500 are reporting earnings 4.2% above expectations, indicating a moderate result. Concerns are arising as some investors reassess expectations for rate cuts this year following strong economic data and statements from Fed officials, suggesting that rate cuts may not be as aggressive as expected.

The Fed meeting next week could further sway markets, as investors seek signs from the central bank on its quantitative tightening program, and its inflation fight, which may also affect Treasury yields. The employment data could also impact investor sentiment, signaling whether the Fed’s rate increases are effective or if they need to keep rates elevated due to a strong labor market. Overall, next week is expected to be the largest ‘event-risk’ week ahead in recent memory.



Read more: Wall St Week Ahead-Fed, earnings and economic data to test US stocks near record highs