Alphabet (GOOG, GOOGL) will report earnings after the bell, kicking off Big Tech earnings with Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), and Apple (AAPL) to follow. Barclays head of US equity strategy Venu Krishna sits down with Seana Smith and Brad Smith on Morning Brief to discuss what investors need to see from Big Tech companies' quarterly results and the broader market impact.

The strategist explains that he expects Big Tech companies’ earnings to moderate from their recent rapid growth. “Everybody keeps focusing nowadays on [the] broadening of earnings and how Big Tech moderating is not necessarily bad. That's the half-glass-full kind of situation.”

“Historically, when Big Tech multiples have corrected, correlations have increased with the rest of the market. So, in other words, you're not immune outside.” He notes that the expectations for Big Tech have been set high, given their overperformance in recent quarters.

Krishna says an earnings beat 5% to 6% above Wall Street estimates is “reasonable,” while “Anything less than that, I would be disappointed. Anything above that is phenomenal. They will be back in complete control compared to the rest of the market.”

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This post was written by Naomi Buchanan.