New York, New York – Investors are eagerly anticipating a week filled with company earnings reports, shifting their focus away from recent Middle East tensions. With a lineup that includes some of the tech industry’s biggest players, such as Nvidia Corp. and Salesforce Inc., the market is buzzing with anticipation.
Following a rough week for the US stock market, S&P 500 futures saw a 0.5% increase, while Nasdaq 100 contracts rose by 0.7%. Traders found relief in the absence of further conflict between Iran and Israel, leading to a decrease in demand for safe-haven assets. The Bloomberg dollar index remained stable, while 10-year US Treasury yields rose slightly. Both oil and gold prices experienced a decline.
Tech giant Nvidia Corp. saw a positive turn in premarket trading, bouncing back after a significant drop in market capitalization. Meanwhile, software company Salesforce Inc. experienced a 3% rise following reports of cooling takeover talks. On the flip side, Tesla Inc. announced price cuts for its electric vehicles, causing its stock to drop over 2%.
Market analyst Kyle Rodda from Capital.com in Melbourne noted, “We are seeing a relief rally underway this morning as geopolitical risks subside,” emphasizing the shift back to focusing on macroeconomic and corporate fundamentals.
In Europe, the Stoxx Europe 600 index began to recover from last week’s losses, with Prosus NV shares surging 5%. Other notable movers included Galp Energia SGPS SA, which saw a significant increase after announcing a commercial oil find, and Sandoz Group AG, which climbed to a record high following the approval of its Psoriasis drug by the European Commission.
Expectations of robust earnings from major US companies, especially tech behemoths like Apple, Microsoft, and Amazon.com Inc., are projected to boost the S&P 500 Index. Despite concerns about rising bond yields, many analysts remain optimistic about the upcoming earnings reports.
Looking ahead, traders are preparing for key US economic data releases later in the week, which could impact policy decisions by the Federal Reserve. Additionally, a series of Treasuries auctions will provide insight into whether yields have reached their peak for the year.
Overall, the market is bracing for a week filled with corporate earnings reports and economic indicators, as investors navigate through changing geopolitical landscapes and market dynamics to make informed decisions.