economy
'Mag 7' Earnings, Fed Meeting Will Test a Stock Market Near All-Time Highs. Here's What's Ahead
Stocks are set to close out April with major gains even as a war in the Middle East is ongoing, and fears around AI disruption evolve.
TL;DR
- The S&P 500 and Nasdaq Composite have reached all-time highs, with significant gains in April.
- Five of the 'Magnificent Seven' tech companies are set to report earnings, with a focus on AI spending and revenue growth.
- Alphabet, Amazon, Meta Platforms, and Microsoft, reporting Wednesday, have already seen substantial rallies this month.
- Apple's earnings report is also highly anticipated, following news of leadership changes.
- The Federal Reserve meeting concluding Wednesday is significant, potentially being Jerome Powell's last before Kevin Warsh takes over.
- Rising gas prices may prevent the Fed from lowering interest rates, despite previous calls for such action.
- The period following May is historically associated with weaker stock market performance ('Sell in May and go away').
- Experts suggest that current market conditions present more downside risk than upside potential, advising diversified allocation.