The stock market ended the week on a high note, with technology stocks leading the charge as investors eagerly await the release of quarterly earnings reports from five of the biggest names in tech: Microsoft, Apple, Meta, Amazon, and Alphabet. These companies, collectively known as the “Magnificent Seven,” are set to report their financial performance between October 29th and 31st, and their results are expected to significantly impact the market’s overall sentiment.
The excitement surrounding these tech giants is palpable. Combined, these companies represent nearly 45% of the S&P 500’s market capitalization, making their performance a crucial indicator of the broader market’s health. The anticipation is heightened further by the fact that other major companies, including McDonald’s, Visa, Eli Lilly, Mastercard, Chevron, and Exxon Mobil, are also scheduled to report their earnings next week.
The Nasdaq 100, heavily weighted towards tech stocks, surged by 1.5% on Friday, fueled by a strong performance from semiconductor companies. The S&P 500 also mirrored this upward trend, closing the day 0.5% higher. However, the Dow Jones Industrial Average, which tends to be more sensitive to economic uncertainties, ended the day down 0.3%, potentially ending a six-week winning streak.
While tech stocks dominated the headlines, the U.S. dollar continued its strengthening trend, with the DXY Index rising past the 104 mark. This marks the fourth consecutive week of gains for the dollar, indicating a potential shift in investor sentiment. Treasury yields remained relatively steady throughout the day.
In other market developments, WTI crude oil prices rose by 1.8% on Friday, driven by concerns over potential geopolitical tensions in the Middle East. The price of Bitcoin also saw a slight increase, trading at $67,695.
Several individual stocks made noteworthy moves in response to their earnings reports. Capital One Financial Corp. saw a significant 7% jump, driven by better-than-expected quarterly results. Digital Realty Trust also surged over 10% after reporting record new lease bookings.
The market remains focused on the upcoming earnings season, with investors anxiously awaiting the results from tech giants and other major corporations. The outcome of these reports will likely shape the market’s direction in the coming weeks.