Earnings concerns related to AI and consumer spending derail stock market rally

From Yahoo Finance: 2024-07-27 09:00:01

The latest earnings reports are causing worry in the US stock market over artificial intelligence’s impact and potential consumer spending slowdowns. Concerns caused a stock-market rally derailment with the Nasdaq 100 Index falling 2.6% over a third straight weekly loss. Earnings continue, with companies like Microsoft, Meta Platforms, Amazon, and Apple reporting next week. Recent data shows solid economic growth and easing inflationary pressure, raising bets on earlier rate cuts by the Federal Reserve. While some companies have posted disappointing figures, not many have been severely punished yet. Concerns also arise over the strength of the economy due to lower consumer spending reported in various sectors. UPS and airline companies lowered earnings forecasts for the year, indicative of economic weakness.



Read more at Yahoo Finance: Earnings Derail Stock Rally Over Doubts on AI, Consumer Strength