The last quarter’s financial results for the “Magnificent Seven” will start at a critical time for Wall Street. The main North American indexes ended the session in the red, pressured mainly by technology stocks, which led losses in the S&P500 this Friday.
The turnaround in technology companies led to them ending the week with losses of 5%, more pronounced in semiconductor manufacturers – Nvidia fell by 2.61% and Intel by 5.42%.
“Next week is important for the near-term trajectory of stock earnings, with many of the tech giants reporting,” Glen Smith of GDS Wealth Management told Bloomberg. “If you see a combination of tech earnings and a slowdown in inflation, it could reverse the recent bear market and trigger a new round of gains,” he added.
Tesla and Alphabet will kick off the quarterly results of the largest listed companies. The following week it will be the turn of Microsoft, Meta Platforms, Amazon e a Apple.
A botched software update by cybersecurity firm CrowdStrike caused numerous Microsoft computer systems to crash, hurting the shares of both companies: they fell 11.10% and 0.7%, respectively.
The S&P 500 fell 0.7% to 5,505.00, its biggest weekly drop (1.97%) since April. The tech-heavy Nasdaq Composite fell 0.8% to 17,726.94. The Dow Jones Industrial Average lost 0.93% to 40,287.53.
The decline also spread to other sectors. American Express fell 2.74% after warning of rising marketing expenses along with a slowdown in revenue growth.
Netflix slipped 1.51% despite the streaming giant beating forecasts for profits, revenue and subscribers.
In addition to a slew of earnings next week, investors will be keeping a close eye on key US economic reports in the hope that the Federal Reserve will keep alive the case for a September interest rate cut.
Source: www.jornaldenegocios.pt
