Nasdaq Dips 0.2% in Quiet Opening to Busy Earnings Week for Stock Market
Nasdaq fell slightly in a quiet opening session for the week, but stocks are expected to heat up as major earnings release.
Quick overview
- The stock market opened quietly on Monday, with the Nasdaq down 0.2% and the S&P 500 dipping 0.1%.
- Major earnings reports from Microsoft, Apple, and Meta are expected this week, potentially impacting trading patterns.
- The Federal Reserve is likely to maintain current interest rates, with inflation at 2.7% and a low chance of a rate cut.
- Stocks, particularly in the energy and tech sectors, are anticipated to rise this month amid positive earnings expectations.
The stock market indices changed little as trading began for Monday in the last week of January, with the Nasdaq down just 0.2% and the S&P 500 dipped 0.1%.
This is a big week for the stock market, with major earnings reports to be released and a key meeting for Federal Reserve policy scheduled for later in the week. Microsoft (MSFT), Apple (APPL), and Metal Platforms (META) are all reporting on their quarterly earnings this week, and the market is relatively quiet in anticipation.
Stock futures showed little change as early trading started on Monday, but trading could heat up as we get closer to the date of the Fed meeting on Wednesday, and we expect quarterly reports to shift trading patterns dramatically, especially since several major hitters are stepping up.
An Optimistic Outlook for the Market
Most data indicates that this will be an excellent week for the stock market, with recent S&P 500 listed companies reporting that they beat Wall Street earnings expectations about 76% of the time during this season. Market indices are near all-time highs as well, despite several major tariff scares over the last 12 months.
The Federal Reserve is expected to retain its current rates, with market sentiment showing a low chance of a rate cut. The most recent cut was in December of last year, so it is unlikely that the Fed will be issuing another rate cut so soon, especially with inflation at 2.7% right now. The Federal Reserve has said they are aiming for a 2% rate.
The market is concerned about a possible government shutdown. Allotments for Homeland Security in the latest government funding package has raised the ire of several Democrat senators. They said they would not approve the funding measure after a U.S. citizen was shot to death by immigration agents in Minnesota in January.
Stocks are expected to increase this month during this key earnings week, with growth for the energy and tech stocks showing particular promise. Apple should do well as its latest iPhone has topped sales expectations, and demand is growing for the tech giant’s products. APPL stock rose 1.58% in premarket trading Monday and could climb even higher before the company releases its earnings statement. MSFT gained 0.2%, and META was up 0.78% in premarket trading as well.
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