Earnings season begins with tech stocks leading the market, potential rate cut looming.

From Nasdaq: 2024-07-08 09:38:00

The stock market has been incredibly calm, with June being the quietest month in almost five years. Despite the tranquility, complacency is setting in as earnings season begins. Fed Chair Powell will testify before Congress, and with last week’s jobs report, there’s a 77% chance of a rate cut in September.

Tech stocks continue to lead the market, with the Nasdaq up over 22% and the S&P 500 up 16.7% so far this year. While the major indexes are doing well, only 46% of NYSE stocks are trading above their 50-day moving averages, signaling underlying weakness and room for improvement.

Tesla’s stock has made a major comeback in 2024, gaining 44% in the past month after strong Q2 deliveries. Palantir, an intelligence software provider, broke out to a 52-week high last week, set to report second-quarter earnings in early August. Both companies are outperforming the market this year.

Zacks Investment Research has identified a little-known chemical company with massive upside potential, expected to double or even rival gains made by companies like Boston Beer and NVIDIA. With soaring earnings estimates and strong demand, this stock could be the next big winner in the market.



Read more at Nasdaq: Q2 Earnings Season Kicks Off as These Leaders Surge: Stocks to Watch