US stocks are poised for a rebound on Monday after enduring their worst week of the year, with the S&P 500 (^GSPC) showing signs of positivity as investors gear up for a wave of corporate earnings reports.
Following six consecutive days of losses, S&P 500 (^GSPC) futures climbed 0.5%, while Dow Jones Industrial Average (^DJI) futures and Nasdaq 100 (^NDX) contracts also saw gains of 0.5% and 0.6%, respectively.
The recent market downturn has left the rally in a precarious position, prompting speculation about whether the slump will persist. Tech stocks, in particular, are looking to bounce back after lackluster earnings from Netflix (NFLX) weighed on the market, compounded by geopolitical tensions and doubts about further interest rate cuts.
Investor focus now shifts to upcoming earnings reports from tech giants such as Meta (META), Microsoft (MSFT), and Alphabet (GOOG), with Verizon (VZ) kicking off the week’s earnings announcements. Tesla (TSLA) is also in the spotlight ahead of its earnings release, as the company announced price cuts in multiple markets and faces scrutiny over its robotaxi plans and executive compensation.
Amid ongoing debate about the Federal Reserve’s stance on interest rates, the upcoming release of the PCE index on Friday will be crucial in determining the future trajectory of rates. Chair Jerome Powell’s recent hawkish comments in response to persistent inflation have raised concerns about the possibility of prolonged rate hikes.
As the market braces for a flurry of earnings reports and economic data, investors are hopeful that strong results from major tech companies will help reignite the market and restore confidence among traders. Despite recent challenges, some analysts remain optimistic about the long-term prospects of companies like Nvidia (NVDA), emphasizing the strength of their underlying fundamentals and potential for future growth.
