Investors are gearing up for a pivotal week, as Big Tech earnings and an expected US interest rate cut could set the country’s economic trajectory for the rest of the year.
A cooler-than-expected inflation report on Friday sent stocks to fresh highs as traders bet the Federal Reserve will trim the cost of borrowing on Wednesday.
But some analysts warn the market is particularly fragile and increasingly reliant on AI spending, with overvalued equities prone to dramatic swings.
Earnings reports on Wednesday and Thursday from Microsoft, Alphabet, Meta, Amazon, and Apple — which together account for a quarter of the S&P 500 — will provide a fresh test for the bull market.
