Bull Market Expected To Be Guided By The Big Tech Earnings

Next week, the Magnificent Seven, which includes companies like Tesla, Meta Platforms, Alphabet, and Microsoft, will announce how well they did in terms of earnings. People are very interested in these reports because they could make the stock market better or at least help investors know what to do.

These companies started the year strong, but lately, they haven’t been doing as well. They are announcing their earnings during a time when there are increasing tensions between countries, Treasury yields are going up, and people are changing their minds about whether interest rates will go down.

The S&P 500 recently went below 5,000, showing that the stock market is going up and down a lot right now, and investors are feeling worried.

How People Feel About AI?

Investors and experts are eagerly waiting to see how artificial intelligence (AI) will make money and affect companies like Google and Microsoft.

People are anticipated to witness the changes AI will bring.

Emily Leveille, who manages investments at Thornburg Investment Management, thinks Microsoft and Meta will report good earnings. She says this shows that AI is becoming more important and that companies are making more money.

Also, people are interested in what companies that deal directly with consumers will say next week. They want to know how much people are still spending, even with prices going up. Visa’s earnings report will be especially watched for this.

Finance Of Tesla

People are paying extra attention to Tesla’s upcoming earnings report. This comes after a tough year for the company, with sales slowing down and more competition, especially from China.

Tesla has reduced the pricing of its selective model.

Deutsche Bank lowered its rating for Tesla because they’re worried about where the company is headed. They’re especially concerned about the possibility of Tesla not making a cheaper car anymore.

CEO Elon Musk has responded to reports that Tesla might not make the Model 2 anymore. Also, everyone is waiting to see what Tesla’s new robotaxi design will look like. These are big moments that will decide what happens next for the company.

AI’s Impact on the Economy and Tech Strength

The big question in the tech world is whether investing in AI pays off. Companies like Microsoft are focusing on their Azure cloud platform and Copilot feature.

Artificial Intelligence

Even though a lot of money is being spent on AI infrastructure, we’re not sure if it’s worth it right now. If things don’t turn out as expected, it could be bad news for the hardware industry.

But despite this uncertainty, tech giants like Microsoft are still expected to make good money from their main businesses, which helps keep things stable even with all the talk about AI.

Michael Manua
Michael Manua
Michael, a seasoned market news expert with 29 years of experience, offers unparalleled insights into financial markets. At 61, he has a track record of providing accurate, impactful analyses, making him a trusted voice in financial journalism.
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