In This Article:
Early on Monday, U.S. stock futures declined while the futures connected to the Dow Jones Industrial Average fell 182 points, which equated to a 0.41% decrease. A cautious outlook emerged as S&P 500 futures dropped 0.98% while Nasdaq 100 futures declined 1.96% ahead of a key earnings week.
The upcoming earnings reports from tech giants Big Seven members Meta Platforms (META, Financial), Apple (AAPL, Financial) and Microsoft (MSFT, Financial) alongside Tesla (TSLA, Financial) represent key indicators for investors this week. As major companies deliver quarterly earnings reports, investors will analyze the strength of the bull market and the ongoing impact of AI on their businesses. These stocks represent 40% of the S&P 500 portfolio; therefore, any results below expectations from these "Magnificent 7" companies could produce widespread market declines.
As S&P 500 companies announce their fourth-quarter earnings results, FactSet shows that 80% of companies outperformed EPS forecasts by 16% of reporting companies. Market sentiment could shift based on the forthcoming Federal Reserve meeting scheduled for Wednesday, together with the upcoming inflation data on Friday. Broader market momentum continues to rise as the S&P 500 recently broke new record highs despite weakening performance in December.
This article first appeared on GuruFocus.