Will strong tech earnings push the market to new heights despite weak economic data?
The S&P 500 closed 0.15% higher on Wednesday, as investors awaited earnings releases from Microsoft and Meta. The results released after the session were better than expected - Microsoft is expected to open 9% higher today, while Meta gains 6% in pre-market trading. This morning, futures suggest the S&P 500 will open 1.2% higher, pushing above the 5,600 level.
The investor sentiment has further worsened, as shown in yesterday’s AAII Investor Sentiment Survey, which reported that only 20.9% of individual investors are bullish, while 59.3% are bearish.
The S&P 500 is expected to extend its short-term uptrend, as we can see on the daily chart.
S&P 500 Futures Contract: Rallying After Earnings
This morning, the S&P 500 futures contract is trading higher, boosted by strong results from tech giants. The resistance level is around the 5,700 mark. The market is advancing despite weak economic data, primarily driven by AI-fueled growth in the tech sector.
Conclusion
The S&P 500 is likely to extend its gains following better-than-expected earnings from Microsoft and Meta. It's expected to open 1.2% higher, pushing above the 5,600 level.
Last week, the market advanced on several positive catalysts, including easing tariff fears, potential peace developments in Ukraine, and anticipated quarterly earnings releases. That said, it remains uncertain whether this is a new uptrend or still merely a correction within the downtrend.
Here’s the breakdown:
- S&P 500 closed 0.15% higher on Wednesday, and today, it is poised to open higher following strong tech earnings.
- Microsoft and Meta reported better-than-expected results, with AI-fueled demand boosting their outlook.
- The market is awaiting earnings releases from Amazon and Apple today after the session closes.
- Trade policy developments remain in focus.
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Paul Rejczak
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