The S&P 500 index has had a retracement of 2.8% over the past two weeks, but one of the biggest earnings weeks for calendar Q2 is upon us. Major companies such as Apple, Microsoft, Amazon, and Meta Platforms are all set to release their earnings this week. Additionally, the Federal Reserve will release its interest rate decision on Wednesday.
McDonald’s was the first to report earnings this week, and while they missed expectations, their share price still increased due to the success of their $5 Meal deal. Other companies such as Microsoft, Meta Platforms, Apple, Amazon, Starbucks, ExxonMobil, Intel, and Merck are also expected to release quarterly results this week.
The Federal Reserve’s July interest rate decision is highly anticipated, with only a 5% chance of a rate cut predicted based on the CME Group’s FedWatch Tool. The market has been in sell-off mode recently, with lackluster results from companies like Alphabet and Tesla contributing to the overall negativity in the markets.
Traders are hopeful that the market’s fortunes may change with this week’s earnings reports. Microsoft is expected to show a 15% gain in top-line growth, while other companies like Advanced Micro Devices and Meta Platforms are also expected to release positive results for their respective quarters.
Apple, Amazon, Intel, Coinbase, DraftKings, and other major companies are set to release their earnings later in the week, making Thursday the most-watched session. Oil and gas giants like ExxonMobil and Chevron will report on Friday, rounding out a week filled with high-profile earnings announcements.
The S&P 500 index is a widely followed stock price index that measures the performance of 500 publicly owned companies and is considered a broad measure of the US stock market. Traders can trade the index through various instruments like CFDs, index funds, and ETFs. The performance of the component companies, macroeconomic data, and the decisions of the Federal Reserve all influence the movement of the S&P 500.
The S&P 500 index has seen a pullback since its all-time high in mid-July, with support at 5,390 and resistance at 5,490. The Moving Average Convergence Divergence (MACD) indicator shows a downtrend, with recent support from the 50-day Simple Moving Average (SMA). Traders are watching closely to see how the index reacts to the upcoming earnings reports and the Federal Reserve’s interest rate decision.
