From Nasdaq:

Next week presents critical market events, including earnings reports from technology giants like Alphabet and Microsoft, the Fed’s monetary policy meeting, and the release of the jobs report. These major factors come amidst a market environment with expectations of stable growth and cooling inflation that will be put to the test. With the possibility of rate hikes and changes to quantitative tightening from the Fed, there is much for investors to consider as they monitor market reactions. The week is expected to be a major risk event, with huge implications for the entire global economy.

Earnings from the so-called “Magnificent Seven” – companies of immense market value including Alphabet, Microsoft, Apple, Amazon, and Meta – will prove a major focal point of next week. As these five companies collectively account for nearly 25% of the S&P 500, their earnings and performance could significantly influence the broader market sentiment. Investors and analysts will be closely watching their results and predictions for potential repercussions on the market.

The market excitement over a soft economic landing and stable growth could hinge on next week’s events. Along with earnings, the Federal Reserve meeting and employment data carries the potential to shift market sentiment. There may be reassessment of expectations for rate cuts this year, should strong economic data and Fed commentary hint at reducing borrowing costs. Investors are seeking evidence to maintain confidence in navigating through the anticipated soft landing, and the upcoming meetings could provide valuable market signals.

The performance and behavior of top companies in key sectors, notably electric-carmaker Tesla and chipmaker Nvidia, continue to demonstrate the market’s changing landscape. For investors, diverse performances among these technology and growth stocks could mean less stability in portfolio choices. Yielding no clear monolithic market performance thus far in 2024, the “Magnificent Seven” could prove essential to determining sentiment in the coming weeks.



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