Investors are hoping the new week will bring a slew of good news from earnings season. Publicly traded companies are reporting revenues and profits for the first quarter of this year. The stock could thus reverse the negative trend after last week.
Technology giants will report quarter results
Nearly 180 companies that are included in the main index of the New York Stock Exchange S&P 500 are going to report their results for the first quarter of this year this week. Technology giants Apple, Microsoft, Amazon and Alphabet (Google’s parent company) will also announce their financial results for January to March.
Investors are hoping to reverse the bad mood that marked Wall Street trading at the end of last week. The Dow Jones index fell 2.82 percent on Friday, its worst one-day performance since October 2020. The S&P 500 (-2.77) and the tech-heavy Nasdaq (-2.55) also lost more than 2.5 percent.
Fed will decide on interest rates
Trading was marked not only by poor results of the Netflix streaming service, but also by investor nervousness about the upcoming meeting of the US Federal Reserve. The Fed will decide on interest rates on 3 and 4 May. Investors expect rates to rise by 0.5 percentage point, but there is a growing belief that it could be more. And that would not be good news for the markets.