From Nasdaq:

Wall Street’s record highs will be tested as U.S. technology companies release fourth-quarter earnings. The S&P 500 rose 24% in 2023; Nasdaq gained 43%. Fourth-quarter earnings for S&P 500 companies are expected to rise 4.5%. The “Magnificent 7” companies are expected to influence earnings and the market. Valuations are high at 19.7 times forward 12-month earnings estimates.

Market already at a record high with sluggish gains, equities may stall in 2024. 2024 analysts expect S&P 500 earnings to rise by 11%. Anticipating Federal Reserve cuts in interest rates means lower business costs and raised expectations for chipmaker results in tech earnings.

An index of semiconductors (SOX) jumped 65% in 2023 and reached record highs. Netflix and Tesla results this week, Big Tech like Microsoft and Alphabet on Jan. 30, and Apple, Meta Platforms, and Amazon on Feb. 1. Nvidia, the world’s valuable chipmaker, will report earnings and an AI processor product launch later in February.

The S&P 500 had 2023’s total return of 62% from the Magnificent 7. Despite big gains, optimism over technology stocks and AI remain strong. Companies’ results will influence not only their stock prices but the market overall. Well followed by investors.



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