The Monday trading session saw the Wall Street index turn higher due to a boost from technology stocks. In addition, markets are also looking at the upcoming earnings reports with enthusiasm and anticipation. For the most part, the earning growth of most technology stocks will definitely be lower as compared to previous years.
Almost all three stock indices from the US extended their gains from the Friday session. But the one leading the pack was the Nasdaq, without any doubt. According to experts, the Nasdaq got its strength from the semiconductor shares (listed on the Nasdaq).
According to Chase Investment Council President, the chip stocks were depressed for a long time. So it is not a surprise to see them prop them ahead of the earning season.
But it is only a few weeks before we will see the actual results of these tech companies. So at that time, it will become clear how these tech companies performed and what's ahead.
For the most part, the chip stocks were all set for a rebound, and that's what we saw in the last few days.
Economic Data And Earnings Reports Ahead
It wouldn't be wrong to say that the markets are experiencing a calm-before-the-storm kind of situation. In the next few days, we will start getting earning reports of major companies along with important economic data.
And if we look at the Fed, most investors agree that a small interest rate hike is on the cards. Because if you think about it, Fed still has a lot to do to take the decade's high inflation in the USA.
Most investors believe that the size of these rate hikes will get small and small (bite-sized). The reason for this optimism is the eventual slowdown in inflation.
Basically, the situation has improved a lot for the stocks in general & is already apparent by looking at the major indices. Especially the major growth stocks will benefit a lot from these situations & will push the indices higher.