US stock futures climbed on Monday, signaling a possible market rebound following a steep decline last week. The S&P 500 Index has lost over 5% this month.
Geopolitical tensions in the Middle East and concerns about persistently high inflation had weighed on the stock market in recent times. However, the focus this week shifts to the upcoming earnings bonanza from Big Tech companies. Many of the “Magnificent Seven” – a group of influential tech giants – are scheduled to release their financial results, along with other prominent names.
The Magnificent Seven has benefited from the growing enthusiasm for advancements in artificial intelligence. Tesla will disclose its first-quarter earnings on April 23rd, despite facing challenges at the beginning of the year. Google’s parent company, Alphabet, has performed exceptionally well, becoming the second-best performer after Nvidia this year, with a 38% year-to-date increase. Alphabet has experienced growth in its advertising business and has capitalized on the AI trend, recently launching the latest version of its large language model, Llama 3.
Microsoft and Meta, two other members of the Magnificent Seven, are also expected to release their earnings this week, having also invested heavily in AI technologies. Wall Street analysts remain optimistic about both companies. Amazon will announce its earnings on April 30th, while Apple and Nvidia will follow in May. Nvidia’s stock price dropped significantly on April 19th, reaching its lowest point since February. Apple’s shares have declined by over 11% this year due to concerns about slowing growth and decreasing sales.
In addition to the earnings reports, investors will also be watching other economic indicators, such as new-homes sales data on April 23rd and weekly jobless claims on April 25th.
