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Wall Street on Edge: Fed, Big Tech Earnings Loom
28 Apr
Summary
- US stock markets show cautious trading ahead of key economic events.
- Tech stocks and oil prices are notably influenced by geopolitical factors.
- Investors await critical Fed rate decisions and major tech company earnings.
US benchmark indices experienced a day of watchful trading, though tech-heavy Nasdaq and S&P 500 achieved new record highs, buoyed by strong performances from Nvidia and Qualcomm. The S&P 500 is positioned for its most substantial monthly gain since 2020, with its Relative Strength Index indicating a shift from oversold to overbought conditions rapidly.
Attention is sharply focused on upcoming critical events. The Federal Reserve's interest rate decision on Wednesday is anticipated, potentially marking the final one for Chair Jerome Powell. Concurrently, a substantial earnings period from major tech firms, collectively valued at $16 trillion, is set to unfold, with giants like Alphabet, Microsoft, Amazon, and Meta reporting after the market close on Wednesday.
Geopolitical developments, particularly concerning US-Iran relations and the Strait of Hormuz, continue to influence market sentiment. Iran has indicated a potential end to conflict if the US lifts its naval blockade and offers guarantees. This situation is contributing to sustained high oil prices, with Brent crude exceeding $108 per barrel, and Goldman Sachs revising its Q4 oil price forecast upwards.
