The focus in New York markets this week will be on earnings from major tech companies and trends in AI-related stocks. The Dow edged higher last week, while the Nasdaq posted a sharp decline, leaving investors wary of the earnings season and developments in interest rates and crude oil prices.
Market attention in New York this week is expected to center on earnings reports from major technology companies and trends in AI-related stocks. Last week, the Dow Jones Industrial Average edged up 0.67%, while the Nasdaq Composite plunged 4.48%. Concerns that inflation data could come in above expectations, a sharp rise in crude oil prices, and worries about overinvestment and rising debt were cited as factors, intensifying selling in semiconductor and AI-related stocks.
At times, however, falling interest rates and a rotation into defensive and energy stocks supported the Dow. This week, earnings reports from major companies including Meta Platforms and Tesla, as well as IBM, Procter & Gamble and American Express, are expected to be the focus of the market.
Developments in AI-related stocks could be affected by sentiment toward the sustainability of AI infrastructure investment by mega-cap technology companies and their earnings outlooks. Earnings information is therefore expected to be a key market driver this week. Economic indicators are expected to be limited, with October's S&P Global PMI among the few major releases, while crude oil prices and long-term interest rates will also remain important factors to watch.