U.S. stock markets and indices remained stable on Tuesday after a positive session on Wall Street, with investors bracing for a week filled with earnings reports and crucial economic data.
On Monday, Wall Street indexes posted slight gains, remaining near all-time highs. The Dow Jones Industrial Average led with a 0.7% rise, while the S&P 500 and Nasdaq Composite gained 0.3% each.
Alphabet to Kick Off Big Tech Earnings
Five of Wall Street’s “Magnificent Seven” are set to report earnings this week, with Alphabet (GOOGL), Google’s parent company, leading on Tuesday after market close. Meta Platforms (META) and Microsoft (MSFT) will follow on Wednesday, while Apple (AAPL) and Amazon (AMZN) are due on Thursday.
Given their sizable market capitalizations, these results are expected to be influential for the broader market. Investors will closely examine whether these tech giants have generated returns on their significant AI-related investments over the past year.
“Despite net positive risk flows over the past week, positioning for the S&P 500 remained cautiously long,” Citi strategists, led by Chris Montagu, noted in a recent report.
Economic Data and Election Anticipation
Alongside earnings, key economic data expected this week could influence the Federal Reserve’s monetary policy. September JOLTS job openings will be released later today, with U.S. GDP data following on Wednesday. Most attention, however, is on Thursday’s core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation measure, and Friday’s monthly employment report.
These reports come just weeks before the Fed’s meeting, where a 25-basis-point rate cut is widely anticipated.
Next week also brings the U.S. presidential election, scheduled for November 5. Republican candidate Donald Trump and Democratic candidate Vice President Kamala Harris are in a tight race, though polls and prediction markets currently lean slightly toward Trump.
Oil Prices Stabilize Amid Middle East Tensions
Oil prices steadied after sharp losses in the previous session, largely driven by ongoing tensions in the Middle East. On Saturday, Israel launched a retaliatory strike against Iran, targeting missile defense and military facilities but avoiding nuclear and oil sites. Markets are watching closely for potential developments in the conflict, as many hope it will not escalate further.
