Big Tech on the Hot Seat: Markets Dip Amidst Fed Commentary and Uncertainty

US markets have continued their downward trend despite strong earnings reports from tech and financial giants. Investors remain cautious due to concerns about inflation, Fed commentary, and a realization that interest rate cuts may be delayed. While companies like Goldman Sachs, Morgan Stanley, United Airlines, Taiwan Semiconductor Manufacturing, and Netflix have exceeded expectations, overall guidance and commentary have been more cautious. Investors are reacting more to tepid CEO commentary than actual results, highlighting uncertainty in the current economic climate. Big tech companies, known as the “Magnificent 7,” are set to release earnings this week, including Tesla, Meta, Microsoft, and Alphabet. Intel is also expected to post strong growth due to demand for generative AI products.

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