Benchmark Bull Market and Upcoming Tech Stock Reports Impact Equity Market

Summary

  • On Friday, the benchmark declared a bull market after it recorded a record-high close for the first time in two years.
  • Netflix, Tesla, Abbott Laboratories, Intel, and Johnson & Johnson are anticipated to release results this week.
  • Several technical giants like Microsoft and Apple are expected to publish their results in the following week.
  • Investors are also waiting for the release of personal consumption expenditure (PCE) index, S&P Global PMI readings and an advance fourth-quarter GDP.
  • Preliminary data showed the S&P 500 gained 10.73 points, while the Nasdaq Composite and Dow Jones Industrial Average also rose.

After setting a record-high close for the first time in two years, a bull market was declared. This signifies a strong market trend. Several companies including Netflix, Tesla, Abbott Laboratories, Intel, and Johnson & Johnson are expected to release their reports this week.

Moreover, next week is anticipated to bring results from top tech-substantial companies, including Microsoft and Apple. “Earnings and guidance will be vital in maintaining the mega tech force in the market”, said Quincy Krosby, a chief global strategist based in Charlotte, North Carolina.

Market Updates

The index of semiconductors inclined and achieved a fresh all-time high, as did Nvidia. Investors are also awaiting this week’s announcements on the personal consumption expenditure (PCE) index, S&P Global PMI readings, and a fourth-quarter GDP prepublication. These facts could hint towards the U.S. central bank’s next course of policy.

“The equity market’s confidence is not surprising given the robustness we’ve witnessed in the initial weeks of the year, supported by the consumer sector,” noted Matt Stucky, Chief Portfolio Manager for Equities at a renowned wealth management firm.

The S&P 500 showed a significant gain of 10.73 points, ending at 4,850.54 points. The Nasdaq Composite and Dow Jones Industrial Average also showed an upward trend, with gains of 49.32 points and 141.30 points, respectively.

Market Expectations

Traders have adjusted their expectations for a rate cut of at least 25-basis-point for the first time in March, with attention now shifting to May. CME Group’s FedWatch Tool predicts a 53% likelihood for this event.

However, the day was not without losses. The Archer-Daniels-Midland stocks plunged after its CFO was put on administrative leave and its profit forecast for the full-year was cut. Furthermore, Gilead’s shares dipped after its cancer drug failed to meet its main goal in a late-stage study.

Ultimately, these findings highlight the dynamically changing nature of the financial markets. They will have important implications for forex trading and assets, reflecting their potential effect on global economies.

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